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Full text of "Legislation on foreign relations through 1977"

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COMMITTEE ON INX 
COMMITTEE ON 




RELATIOKS 
LATIONS 




CURRENT LliGISLATlON AUD \ 
RELATID EXECUJIVH ORDFRs 



vol.! :M} ! 




U.S. HOUSF OF Rfprfsen]aiives 
U.S. Senate 



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COMMITTEE ON INTERNATIONAL RELATIONS 
COMMITTEE ON FOREIGN RELATIONS 



Legislation on 
Foreign Relations 
Through 1977 




JOINT COMMITTEE PRINT 



VOLUME I 



FEBRUARY 1978 



CURRENT LEGISLATION AND 
RELATED EXECUTIVE ORDERS 



U.S. House of Representatives 
U.S. Senate 



Printed for the use of the Committees on International Relations and Foreign Relations 
of the House of Representatives and the Senate respectively 



U.S. GOVERNMENT PRINTING OFFICE 
20-818 WASHINGTON : 1978 



For sale bj- the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C. 20402 



COMMITTEE ON INTERNATIONAL RELATIONS 
CLEMENT J. ZABLOCKI, Wisconsin, Chairman 



L. H. FOUNTAIN. Nortli Carolina 
DANTE B. FASCELL, Florida 
CHARLES C. DIGGS. JR., Michigan 
ROBERT N. C. NIX. Pennsylvania 
DONALD M. ERASER. Minnesota 
BENJAMIN S. ROSENTHAL, New York 
LEE H. HAMILTON, Indiana 
LESTER L. WOLFF. New York 
JONATHAN B. BINGHAM. New York 
GUS YATRON, Pennsylvania 
MICHAEL HARRINGTON, Massachusetts 
LEO J. RYAN, California 
CARDISS COLLINS, Illinois 
STEPHEN J. SOLARZ, New York 
HELEN S. MEYNER. New Jersey 
DON BONKER, Washington 
GERRY E. STUDDS, Massachusetts 
ANDY IRELAND, Florida 
DONALD J. PEASE. Ohio 
ANTHONY C. BEILENSON, California 
WYCHE FOWLER, Jr., Georgia 
E (KIKA) DE LA GARZA, Texas 
GEORGE E. DANIELSON. California 
JOHN J. CAVANAUGH, Nebraska 



WILLIAM S. BROOMFIELD, Michigan 
EDWARD J. DERWINSKI, Illinois 
PAUL FINDLEY, Illinois 
JOHN H. BUCHANAN, Jr., Alabama 
J. HERBERT BURKE, Florida 
CHARLES W. WHALEN, Jr., Ohio 
LARRY WINN, Jr.. Kansas 
BENJAMIN A. OILMAN, New York 
TENNYSON GUYER, Ohio 
ROBERT J. LAGOMARSINO, California 
WILLIAM F. GOODLING, Pennsylvania 
SHIRLEY PETTIS, California 



John J. Brady, Jr., Chief of Staff 



COMMITTEE ON FOREIGN RELATIONS 
JOHN SPARKMAN, Alabama, Chairman 



FRANK CHURCH, Idaho 
CLAIBORNE PELL, Rhode Island 
GEORGE McGOVERN, South Dakota 
DICK CLARK, Iowa 
JOSEPH R. BIDEN, Jr., Delaware 
JOHN GLENN, Ohio 
RICHARD STONE, Florida 
PAUL S. SARBANES, Maryland 
MURIEL HUMPHREY, Minnesota 

Norvill Jones, Chief of Staff 



CLIFFORD P. CASE, New Jersey 
JACOB K. JAVITS, New York 
JAMES B. PEARSON, Kansas 
CHARLES H. PERCY. Illinois 
ROBERT P. GRIFFIN, Michigan 
HOWARD H. BAKER, JR., Tennessee 



(H) 



FOREWORD 



This volume of legislation and related material is part of a three 
volume set of laws and related material frequently referred to by the 
Committees on International Kelations of the House of Representatives 
and Foreign Relations of the Senate, amended to date and annotated 
to show i^ertinent history or cross references. 

Volumes I and II contain legislation and related material and will 
be republished with amendments and additions at the end of each 
annual session of Congress. Volume III which contains treaties and 
related material will not be revised every year, but only as necessary. 
Interim changes or additions involving treaties and related material 
will be included in volume II, during those years when volume III 
is not revised and republished. 

This year the compilation was prepared by Larry Nowels of the 
Foreign Affairs and National Defense Division of the Congressional 
Research Service of the Library of Congress. 

Clement J. Zablocki, 
Chairman^ Cormnittee on International Relations. 
JoHx Sparkman, 
Chairman., Committee on Foreign Relations, 
(in) 



EXPLANATORY NOTE 



All public laws included in this A^olume, except as noted below, are 
codified and in force through the end of the first session of the 95th 
Congress. The texts of the public laws in this volume are printed as 
they appear in the Ignited States Statutes at Large rather than the 
United States Code. Amendments are incorporated into the text and 
distinguished by a footnote. The following public law remains in the 
volume although it has been held unconstitutional : 

1. Section 6 of the Internal Security Act of 1950 (page 640) 
All Executive orders, and State Department delegations of author- 
ity are codified and in force as of January 1, 1978. 

(V) 



ABBREVIATIONS 



Bevans Treaties and Other International Agree- 
ments of the United States of America, 
1776-1949, compiled under the direc- 
tion of Charles I. Bevans. 

CFB Code of Federal Regulations. 

EAS - Executive Ao:reement Series. 

l^'.K Federal Register. 

LNTS League of Nations Treaty Seres. 

I Malloy, II Malloy Treaties, Conventions, International 

Acts, Protocols, and Agreements Be- 
tween the United States of America 
and Other Powers, 1776-1909, com- 
piled under the direction of the United 
States Senate by William M. Mai oy. 

Stat Unte ] States Statutes at Large. 

TIAS Treaties and Other International Acts 

Series. 

TS Treaty Series. 

UNTS United Nations Treaty Series. 

U.S.C United States Code. 

UST United States Treaties and Other Inter- 
national Agreements. 

(VI) 



CONTENTS 



Page 

FOREWORD III 

EXPLANATORY NOTE v 

ABBREVIATIONS vi 

A. FOREIGN ASSISTANCE* 1 

1. Foreign Assistance Acts 1 

2. Foreign Assistance Appropriations 204 

3. Other Foreign Assistance Related Legislation 223 

4. Executive Orders and Delegations of Authority Relating to Foreign 

Assistance 249 

5. Foreign Military Sales 271 

6. Armed Forces Authorizations and Appropriations 323 

7. Laws Relating to Loan or Sale of Vessels to Foreign Countries 333 

B. AGRICULTURAL COMMODITIES 339 

1. Agricultural Trade Development and Assistance 339 

2. Food for Peace Program 383 

C. THE PEACE CORPS 387 

1. The Peace Corps Act, as amended 389 

2. Independent Implementing Provisions of Public Law 89-134 409 

3. Domestic Volunteer Service Act of 1973 (Public Law 93-113) (partial 

text) 410 

4. Executive Order 11G03 (Assigning Functions to the Director of ACTION) _ 41 1 

5. Executive Order 11103 (Providing for the Appointment of Former 

Peace Corps Volunteers to the Civilian Civil Service) 416 

D. ARMS CONTROL AND DISARMAMENT 417 

1. Arms Control and Disarmament Act, as amended (Public Law 87-297) 419 

2. Arms Control and Disarmament Agency Appropriations, 1978 (Public 

Law 95-86) (partial text) 438 

3. Executive Order 11902 (Export Licensing Policy as to Nuclear Materials 

and Equipment) 439 

4. Executive Order 11850 (Renunciation of Certain Uses in War of Chemi- 

cal Herbicides and Riot Control Agents) 441 

E. DEPARTMENT OF STATE 443 

1. Authorizations and Appropriations 445 

2. Organization and Administration 500 

3. Passport Laws and Regulations 637 

4. Foreign Service Buildings 645 

5. Transfer of Property — For Use as a Headquarters Site for the Organiza- 

tion of American States (Public Law 90-553, as amended) 654 

6. Foreign Gifts and Decorations 656 

7. Migration and Refugee Assistance 664 

8. Recognition by the United States of Foreign Governments (S. Res. 205, 

91st Congress) 673 



*A more detailed table of contents appears at the beginning of each section lettered 
A through F. 

(VII) 



I 



VIII 

F. INFORMATION AND EDUCATIONAL AND CULTURAL EX- Page 

CHANGE PROGRAMS 675 

1. United States Information and Educational Exchange Act and Related 

Materials 677 

2. Mutual Educationa and Cultural Exchange Act and Related Materials.. 712 

3. Center for Cultural and Technical Interchange Between East and West 

Actof 1960 (Partial Text of Mutual Security Act of 1960) 732 

4. Japan-United States Friendship Act (Puljlic Law 94-118) 734 

5. Exchange of Materials and Objects 740 

6. United States Recognition and Participation in International Exposi- 

tions (Public Law 91-269) 743 

7. Board for International Broadcasting Act of 1973 (Radio Free Europe/ 

Radio Liberty) 746 

8. Commission on Security and Cooperation in Europe (Public Law 

94-304) 1 752 

9. Control of Swine Influenza (Public Law 94-302) (partial text) 755 

INDEX 757 



A. FOREIGN ASSISTANCE 

CONTENTS 

Page 

1. Foreign Assistance Acts 9 

a. The Foreign Assistance Act of 1961, as amended 9 

Part I: 

Chapter 1 — Policy 10 

Section 1 02 — Statement of Policy 10 

Section 103 — Food and Nutrition 14 

Section 1 03 A — Agricultural Research 16 

Section 104 — Population Planning and Health 16 

Section 105 — Education and Human Resources 

Development 17 

Section 106 — Technical Assistance, Energy, Re- 
search, Reconstruction, and Selected Develop- 
ment Problems 18 

Section 107 — Intermediate Technology 19 

Section 108 — Application of Existing Provisions __ 19 

Section 109— Transfer of Funds 19 

Section 110 — Cost-Sharing and Funding Limits 20 

Section 111 — Development and Use of Coopera- 
tives 20 

Section 112 — Prohibiting Police Training 20 

Section 113 — Integrating Women Into National 

Economies 21 

Section 114 — Limiting Use of Funds for Abortions 

or Involuntary Sterilizations 21 

Section 115 — Prohibiting Use of Funds for Certain 

Countries 21 

Section 116— Human Rights 22 

Section 117 — Infant Nutrition 23 

Section 118 — Environment and Natural Resources. 23 
Section 119 — Renewable and Unconventional 

Energy Technologies 23 

Section 120 — Sahel Development Program — Plan- 
ing 24 

Section 121 — Sahel Development Program — Im- 
plementation 25 

Chapter 2 — Development Assistance 25 

Title I — Development Loan Fund 25 

Section 201 — General Authority 25 

Section 202 — Authorization 27 

Section 203— Fiscal Provisions 28 

Section 204 — Development Loan Committee, 28 
Section 206 — Regional Development in Africa. 29 
Section 207 — Purposes of Development As- 
sistance 29 

Section 208— Self-Help Criteria 29 

Section 209 — Multilateral and Regional Pro- 
grams 30 

Title II — Technical Cooperation and Development 

Grants 31 

Section 211 — General Authority 31 

Section 212 — Authorization 32 

Section 214 — American Schools and Hospitals 

Abroad 33 

Section 215 — Loans to Small Farmers 34 

Section 216 — ^Voluntary Agencies 34 

(1) 



1. Foreign Assistance Acts — Continued 

a. The Foreign Assistance Act of 1961, as amended — Continued 
Part I — Continued 

Chapter 2 — Development Assistance — Continued 

Title II — Technical Cooperation and Development 

Grants — Continued Paw 

Section 217 — Used Equipment 34 

Section 218 — Fish and Other Protein Concen- 
trates 35 

Section 219 — Prototype Desalting Plant 35 

Section 220 — Programs for Peaceful Commun- 
ication 36 

Section 220 A— Suez Canal 36 

Title III — Housing and Other Credit Guaranty 

Programs 37 

Section 221— Worldwide Housing Guaranties. 37 
Section 222 — Housing Projects in Latin Amer- 
ican Countries 37 

Section 222A — Agricultural and Productive 
Credit and Self-Help Community Develop- 
ment Programs 38 

Section 223 — General Provisions 39 

Title IV — Overseas Private Investment Corpora- 
tion 39 

Section 231 — Creation, Purpose, and Policy. _ 39 

Section 232 — Capital of the Corporation 43 

Section 233 — Organization and Management. 43 
Section 234 — Investment Insurance and Other 

Programs 44 

Section 235 — Issuing Authority, Direct In- 
vestment Fund and Reserves 48 

Section 236 — Income and Revenues 50 

Section 237 — General Provisions Relating to 

Insurance and Guaranty Program 50 

Section 238— Definitions 52 

Section 239 — General Provisions and Powers. 53 

Section 240 A — Reports to the Congress 54 

Title VI — Alliance for Progress 55 

Section 251 — General Authority 55 

Section 252 — Authorization 57 

Section 253 — Fiscal Provisions 57 

Title VII— Evaluation of Programs 58 

Section 261 — Evaluation of Programs 58 

Title VIII — Southeast Asia Multilateral and Re- 
gional Programs 58 

Section 271 — General Provisions 58 

Section 272 — Special Provisions 58 

Title IX — Utilization of Democratic Institutions 

in Development 59 

Section 281 — Utilization of Democratic Insti- 
tutions in Development 59 

Title X — Programs Relating to Population Growth. 59 

Section 291 — General Provisions 59 

Section 292 — Authorization 60 

Title XI — Food Production Targets and Reports. 60 
Section 295 — Food Production Targets and 

Reports 60 

Title XII — Famine Prevention and Freedom From 

Hunger 61 

Section 296 — General Provisions 61 

Section 297— General Authority 62 

Section 298 — Board for International Food 

and Agricultural Development 64 

Section 299 — Authorization 65 

Section 300 — Annual Report 65 



Foreign Assistance Acts — ^Continued 

a. Tlie Foreign Assistance Act of 1961, as amended — Continued 

Part I— Continued Pa^e 

Chapter 3 — International Organizations and Programs. 65 

Section 301 — General Authority 65 

Section 302 — Authorization 67 

Section 303 — Indus Basin Development 70 

Section 304 — United Nations Peacekeeping 70 

Section 305 — Integration of Women 71 

Chapter 4— [See Chapter 4 of Part II, p. 96.] 

Chapter 5 — Contingency Fund 71 

Section 451 — Contingency Fund 71 

Chapter 6 — Assistance to Countries Having Agrarian 

Economies 72 

Section 461 — Assistance to Countries Having 

Agrarian Economies 72 

Chapter 7 — Joint Commissions on Rural Develop- 
ment 72 

Section 471 — Joint Commissions on Rural Devel- 
opment 72 

Chapter 8 — International Narcotics Control 73 

Section 481 — International Narcotics Control 73 

Section 482 — Authorization 75 

Chapter 9 — International Disaster Assistance 75 

Section 491 — Policy and General Authority 75 

Section 492 — Authorization 76 

Section 493 — Disaster Assistance — Coordination. _ 76 

Section 494 — Disaster Relief Assistance 76 

Section 494A — Famine and Disaster Relief to 

Drought-Stricken African Nations 76 

Section 495 — Cyprus Relief and Rehabilitation 77 

Section 495 A — Guatemala Relief and Rehabilita- 
tion 77 

Section 495B — Italy Relief and Rehabilitation 78 

Section 495C — Lebanon Relief and Rehabilita- 
tion 78 

Section 495 D — Romanian Relief and Rehabilita- 
tion 79 

Section 495D — Turkey Relief, Rehabilitation, and 

Reconstruction 79 

Chapter 10 — Assistance to Portugal and Portuguese 

Colonies in Africa Gaining Independence 80 

Section 496 — Assistance to Portugal and Portu- 
guese Colonies in Africa Gaining Independence. 80 
Section 497 — Balance of Payments Loan for Por- 
tugal 80 

Part II: 

Chapter 1 — Pohcy 81 

Section 501 — Statement of Policy 81 

Section 502 — Utilization of Defense Articles and 

Defense Services 82 

Section 602 A — Excess Defense Articles 82 

Section 502 B— Human Rights 82 

Chapter 2 — Military Assistance 85 

Section 503 — General Authority 85 

Section 504 — Authorization 86 

Section 505 — Conditions of Eligibility 87 

Section 506 — Special Authority 91 

Section 511 — Considerations in Furnishing Mili- 
tary Assistance 91 

Section 513 — Military Assistance Authorizations 

for Thailand and Laos, and South Vietnam 92 

Section 514 — Stockpiling of Defense Articles for 

Foreign Countries 92 

Section 515 — Overseas Management of Assistance 

and Sales Programs 93 

Section 516 — Termination of Authority 95 

Chapter 3 — Foreign Military Sales 95 

Section 524 — Reimbursements 95 



1. Foreign Assistance Acts — Continued 

a. The Foreign Assistance Act of 1901, as amended — Continued 

Part II — Continued Page 

Chapter 4 — Secu rity Supporting Assistance 96 

Section 531 — General Authority 96 

Section 532 — Authorization 97 

Section 533 — Southern African Special Require- 
ments Funds 97 

Chapter 5 — International Military Education and 

draining 98 

Section 541 — General Authority 98 

Section 542 — Authorization 99 

Section 543 — Purposes 99 

Part III: 

Chapter 1 — General Provisions 99 

Section 601 — Encouragement ^ f Free Enterprise 

and Private Participation 99 

Section 602 — Small Business 100 

Section 603 — Shipping on United States Vessels.- 100 

Section 604 — Procurement 100 

Section 605 — Retention and Use of Certain Items 

and Funds 104 

Section 606 — Patents and Technical Information __ 104 
Section 607 — urnishing of Services and Com- 

mod - c.^ 105 

Sccv^.uii608 — Adva.L Acquisii ion of Proper 106 

Section 609 — Special i.ccoaiit_ 107 

Section 610 — Transfer Betwee A ..c^ 108 

Section 611 — Completion of Pla .> and Cost Esti- 
mates 108 

Sectioii 612 — «-^se of Foreign < urencies 109 

Section 613 — Accounting, Valuation, Reporting, 

and Administration of ForeiTn Currencies 111 

Section 614 — Special Authorit rs 112 

Section 615 — Contract Aut lor ty 112 

Section 616— Ava lability of Fun .. 112 

Sec ion 617 — Termination of Assistance 112 

Section 618 — Use of Settlement Receipts 113 

Section 619 — Assistance to Newly Independent 

Countries 113 

Section 620 — Prohibitions Against Furnishing 

Assistance 113 

Section 620A — Prohibition Against Furnishing 
Assistance to Countries Which Grant Sanctuary 

to International Terrorists 122 

Section 620B — Prohibition Against Assistance and 

Sales to Argentina 122 

Chapter 2 — Administrative Provisions 123 

Section 621 — Exercise of Functions 123 

Section 621 A — Strengthened Management Prac- 
tices 123 

Section 622 — Coordination With Foreign Policy__ 124 

Section 623 — The Secretary of Defense 124 

Section 624— Statutory Officers 125 

Section 625 — Employment of Personnel 130 

Section 626 — Experts, Consultants, and Retired 

Officers 134 

Section 627 — Detail of Personnel to Foreign Gov- 
ernments 135 

Section 628 — Detail of Personnel to International 

Organizations 135 

Section 629 — Status of Personnel Detailed 135 

Section 630 — Terms of Detail or Assignment 135 

Section 631 — Missions and Staffs Abroad 136 

Section 632 — Allocation and Reimbursement 

Among Agencies 137 



I 



1. Foreign Assistance Acts — ^Continued 

a. The Foreign Assistance Act of 1961, as amended — Continued 
Part III — Continued 

Cliapter 2 — Administrative Provisions — Continued Page 

Section 633 — Waivers of Certain Laws 1,59 

Section 634 — Reports an.d Information 139 

Section 635 — General Authorities 142 

Section 636 — Provisions on Uses of Funds 144 

Section 637 — Administrative Expenses 148 

Section 638 — Exclusions 148 

Section 640A — False Claims and Ineligible Com- 
modities 149 

Section 640B — Coordination 150 

Section 640C — Shipping Differential 151 

Chapter 3 — Miscellaneous Provisions 151 

Section 641 — Effective Date ana Identification of 

Programs 151 

Sectioxi 642 — St itates Repealed 151 

Section 643 — Siving Provisi ns 152 

Se.tio 644— Definitions 152 

Section 645 — Unexpended Balances 155 

Section 646 — Construction 155 

Section 647 — Dependable Fuel Supply 155 

Section 648 — Special Authorization for Use of For- 

eiga Currencies 155 

Section 649 — Limitation on Aggregate Authori- 
zation for Use in Fiscal Year 1966 155 

Section 650 — Use of United States Armed Forces. 155 

Section 651 — Sale of Supersonic Planes to IsraeL_ 156 
Section 652 — Limitation Upon Exercise of Special 

Authorities 156 

Section 653 — Change in Allocation of Foreign As- 
sistance 156 

Section 654 — Preside -itial Findings and Deter- 
minations 157 

Section 655 — Limitations Upon Assistance to or 

for Camboaia 158 

Section 656 — Limitations on United States Per- 
sonnel and Personnel Assisted by United States 

in Cambodia 159 

Section 657 — Annual Foreign Assistance and Mili- 
tary Exports Report 159 

Section 658 — Limitation on Use of Funds 161 

Section 659 — Access to Certain Military Bases 

Abroad 161 

Section 660 — Proh biting Police Training 162 

Section 661 — Reimbursable Development Pro- 
grams 162 

Section 662 — Limitation on Intelligence Activ- 
ities 162 

Section 663 — Excharges of Certain Materials 163 

Section 665 — Transition Provisions for Interim 

Quarter 163 

Section 666 — Discrimination Against United States 

Personnel 163 

Section 667 — Operating Expenses 164 

Section 668 — Report on Korea 164 

Section 669 — Nuclear Enrichment Transfers 164 

Section 670 — Nuclear Reprocessing Transfers and 

Nuclear Detonations 165 

Section 671 — Notification of Program Changes 166 

Part VI: 

Chapter 1 — Assistance to the Middle East 166 

Section 901 — Statement of Policy 166 

Section 902— Allocations 167 

Section 903 — Special Requirements Fund 167 



Foreign Assistance Acts — Continued 

b. International Development and Food Assistance Act of 1977 Page 

(partial text) 170 

Section 124 — Inspector General, Foreign Assistance 170 

Section 131 — Fiture United States Development Assist- 
ance 170 

Section 132 — Limitation on Use of Funds; Missing in Action 

in Vietnam 171 

Section 133 — Plan for Increased Minority Business Partici- 
pation in Foreign Assistance Activities 171 

Section 214 — Study of Payments of Ocean Freight Dif- 
ferentials 172 

c. International Development and Food Assistance Act of 1975 

(partial text) 173 

Section 213 — Report Regarding Implementation of Recom- 
mendations of World Food Conference 173 

Section 313 — International Organizations and Programs 173 

Section 320 — Limitation on Assistance to Chile 173 

Section 321— Settlement of Debt Owed the United States. 174 
Section 322 — Participation by Other Countries in Providing 

Assistance to Israel or Egypt 174 

d. Foreign Assistance Act of 1974 (partial text) 175 

Section 3 — Ceiling on Fertilizers to South Vietnam 175 

Section 17 — Review of Military Assistance Program 175 

Section 25 — Limitation Upon Assistance to or for Chile 176 

Section 26 — Limitation on Military Assistance and Excess 

Defense Articles to Korea 176 

Section 27 — Limitation on Assistance for India 176 

Section 28 — Famine or Disaster Relief 177 

Section 43 — Nuclear Powerplants 177 

Section 47 — Gorgas Memorial Institute 177 

Section 48 — International Commission of Control and 

Supervision in Vietnam 177 

Section 49 — Policy on Assistance to Africa 178 

Section 50 — Policy on the Independence of Angola, Mozam- 
bique, and Guinea-Bissau 178 

Section 51 — Conventional Arms Trade 179 

Section 52 — Involvement of Puerto Rico in the Caribbean 

Development Bank 179 

Section 55 — Policy With Respect to Countries Most Seri- 
ously Affected by Food Shortages 180 

Section 56 — Repayment of Loans in Default 181 

e. Foreign Assistance Act of 1973 (partial text) 182 

Section 28 — Asian Development Bank Authorization 182 

Section 30 — Termination of Indochina War 182 

Section 31 — Limitation on Use of Funds 182 

Section 32 — Political Prisoners 183 

Section 33 — Albert Schweitzer Hospital 183 

Section 34— POWs and MIAs 183 

Section 35— Rights in Chile 184 

Section 36 — Revision of Social Progress Trust Fund Agree- 
ment 184 

Section 37 — Prohibition of Assistance to North Vietnam 185 

Section 38 — Report Concerning Certain Use of Military 

Assistance in Africa 185 

Section 39— World Food Shortages 185 

Section 40 — Use of Local Currencies 186 

f. Foreign Assistance Act of 1971 (partial text) 187 

Section 2 — Food for Peace Program 187 

Section 403 — Position of Under Secretary of State for Co- 
ordinating Security Assistance 187 

Section 407 — Periodic Authorizations for State and USIA__ 188 
Section 410 — Limitation on United Nations Assessment of 

United States 188 



1. Foreign Assistance Acts — ^Continued 

g. Special Foreign Assistance Act of 1971, as amended (partial Pasre 

text) 189 

Section 2 — Authorization of Appropriations 189 

Section 3 — Transfer of Defense Articles 'to Korea 189 

Section 4 — Transfer Limitations 189 

Section 6 — Authorization of Local Currencies for Pakistan. 190 

Section 7 — Limitation on Assistance to Cambodia 190 

h. Foreign Assistance Act of 1969, as amended (partial text) 191 

Part IV — The Inter- American Foundation Act 191 

Part V — Amendments to Other Acts 195 

i. Foreign Assistance Act of 1968 198 

j. Foreign Assistance Act of 1967 199 

k. Foreign Assistance Act of 1966 200 

1. Foreign Assistance Act of 1965 201 

m. Foreign Assistance Act of 1964 (partial text) 202 

Religious Persecution 202 

n. Foreign Assistance Act of 1963 203 

o. Foreign Assistance Act of 1962 203 

2. Foreign Assistance Appropriations 204 

a. Foreign Assistance and Related Programs Appropriations Act, 

1978 204 

b. Supplemental Appropriations Act, 1977 (partial text) 218 

c. Supplemental Appropriation Act, 1955, as amended (partial 

text— Sec. 1311, Valid Obligations) 221 

3. Other Foreign Assistance Related Legislation 223 

a. Latin American Development Act, as amended (Public Law 

86-735) 223 

[The Inter-American Foundation Act is on page 191.] 

b. Mutual Security Act of 1959, as amended (partial text) (Public 

Law 86-108) 226 

c. Mutual Security Act of 1954, as amended (retained provisions) ._ 227 

Sec. 402 — Earmarking of Funds 227 

Sec. 408 — North Atlantic Treaty Organization 227 

Sec. 417— Irish Counterpart 228 

Sec. 502 — Use of Foreign Currency 228 

Sec. 514 — International Educational Exchange Activities.. 230 

Sec. 523 — Coordination With Foreign Policy 230 

Sec. 536 — Joint Commission on Rural Reconstruction in 

China 230 

d. Mutual Defense Assistance Control Act of 1951, as amended 

(Battle Act) 231 

e. Use of Foreign Currencies: 

(1) Supplemental Appropriation Act, 1953 (Section 1415, 

Availability of Foreign Credits) 235 

(2) General Government Matters Appropriation Act, 1962 

(Public Law 87-125) (partial text— Sec. 508, Provi- 
sion for Use of Foreign Credits by Federal Agencies).. 236 

(3) Use of Reserved Foreign Currencies (Public Law 

89-677) 237 

f. Amendment to Merchant Marine Act of 1936, as amended (50 

percent of shipment on U.S. -flag vessels) 238 

g. The Sugar Act of 1948, as amended (partial text — Sec. 408(c), 

Provisions for Withholding Sugar Quota) 240 

h. Fishermen's Protective Act of 1967, ns amended (note) 242 

i. Emergency Security Assistance Act of 1973 (Public Law 93-199) 243 
j. Foreign disaster Assistance Act of 1974 (partial text) (Public 

Law 93-333) 245 

k. Amendments to Board for International Broadcasting Act 

of 1973 (partial text) (Public Law 94-104) 246 

4. Executive Orders and Delegations of Authority Relating to Foreign 

Assistance 249 

a. Executive Order 10973, as amended (Administration of Foreign 

Assistance and Related Functions) 249 

b. State Department Delegation of Authority No. 104, as amended^ 257 

c. Executive Order 11223 (Performance of Functions Authorized by 

the Foreign Assistance Act of 1961, as amended) 266 

d. Executive Order 11579 (Overseas Private Investment Corpora- 

tion) 268 



8 

Page 

5. Foreign Military Sales 271 

a. Arms Export Control Act (Public Law 90-629) 271 

b. International Security Assistance Act of 1977 (Public Law 

95-92) (partial text) 301 

c. International Security Assistance and Arms Export Control Act 

of 1 976 ( Public Law 94-329) (partial text) 306 

d. Foreign Military Sales Act Amendments, 1971, as amended 

(partial text) (Public Law 91-672) 316 

Section 5 — Sense of Congress Concerning Arms for Israel 316 

Section (5 — Sense of Congress for Review of Military Aid 

Programs and Discussion on Control of Armaments and 

Arms Trade 316 

Section 7 — Sale or Transfer of International Fighter Aircraft _ 317 
Section 8 — Grants of Excess Defense Articles Charged 

Against Appropriated Funds 317 

Section 10 — Authorization Required Prior to Obligation or 

Expenditure of Funds 317 

Section 11 — Definitions of Defense Article, Excess Defense 

Articles, and Foreign Country 318 

Section 12 — Repeal of Tonkin Gulf Resolution 318 

Section 13 — Detoxification of C'emical Munitions in Okinawa. 318 

e. Executive Order 11958 (Administration of Arms Export 

Controls) 319 

6. Armed Forces Authorizations and Appropriations 323 

a. Department of Defense Appropriation Authorization Act, 1977 

(partial text) 323 

b. Department of Defense Appropriation Act, 1976 (partial text)__ 325 

c. Department of Defense Appropriation Authorization Act, 1976 

(partial text) 326 

d. Department of Defense Appropriation Authorization Act, 1975 

(partial text) 328 

e. Armed Forces Appropriation Authorization, 1971 (partial text). 332 

7. Laws Relating to Loan or Sale of Vessels to Foreign Countries 333 

a. Public Law 84-1028 (partial text) 333 

b. Sale of Naval Vessels (Public Law 94-457) 335 



1. Foreign Assistance Acts 
a. The Foreign Assistance Act of 1961, as amended 

Public Law 87-195 [S. 1983] 75 Stat. 424, approved September 4, 1961, as amended 
by the Foreign Assistance Act of 1962, Public Law 87-565 [S. 2996], 76 Stat. 255, 
approved August 1, 1962; Public Law 87-793 [Postal Service and Federal Em- 
ployees Salary Act of 1962; H R. 7927] 76 Stat. 832, approved October 11, 1962; 
Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963; 
Public Law 88-426 [Government Employees Salary Reform Act of 1964; H.R. 
11049], 78 Stat. 400, approved August 14, 1964; Public Law 88-448 [Dual Com- 
pensation Act; H.R. 7381], 78 Stat. 484, approved August 19, 1964; Public Law 
88-633 [H.R. 11380], 78 Stat. 1009, approved October 7, 1964; Public Law 88-638 
[Amendments to Agricultural Trade Development and Assistance Act of 1954, 
as amended; S. 2687], 78 Stat. 1035, approved October 8, 1964; Public Law 
89-171 [H.R. 7750], 79 Stat. 653, approved September 6, 1965; Public Law 
89-371 [H.R. 12169], 80 Stat. 74, approved March 18, 1966; Public Law 89-583 
[H.R. 15750], 80 Stat. 795, approved September 19, 1966; Public Law 90-137 
[S. 1872], 81 Stat. 445, approved November 14, 1967; Public Law 90-554 [H.R. 
15253], 82 Stat. 960, approved October 8, 1968; Public Law 90-629 [Foreign 
M'lHary Sales Act; H.R. 15681], 82 Stat. 1320, approved October 22, 1968; 
Public Law 91-175 [H.R. 14580], 83 Stat. 805, approved December 30, 1969; 
Public Law 91-652 [Special Foreign AssisUnce Act of 1971; H.R. 19911], 84 
Stat. 1942, approved January 5, 1971; Public Law 92-226 [S. 2819], 86 Stat. 20, 
approved February 7, 1972; Public Law 92-352 [Foreign Relations Authoriza- 
tion Act of 1972; H.R. 14734], 86 Stat. 489, approved July 13, 1972; Public Law 
93-189 [S. 1443], 87 Stat. 714, approved December 17, 1973; Public Law 93-333 
[Foreign Disaster Assistance Act of 1974; H.R. 12412], 88 Stat. 290, approved 
July 8, 1974; Public Law 93-390 [Overseas Private Investment Corporation 
AmcT^dments Art of 1974; S. 2957], 88 Stat. 763, approved August 27, 1974; 
Public Law 93-559 [S. 3394], 88 Stat. 1795, approved December 30, 1974; Public 
Law 94-104 [S. 2230], 89 Stat. 508, approved October 6, 1975; Public Liw 94-161 
[International Development and Food Assi<?ta"ce Act of 1975; H.R. 9005], 
89 Stat. 849, approved December 20, 1975; Public Law 94-273 [Fiscal Year 
Adjustment Act; S. 2445], 90 Stat. 375, approved April 21, 1976, Public Law 
94-276 [Guatemala Relief and Rehabilitation Act of 1976; S. 3056] 90 Stat. 397, 
approved April 21, 1976; Public Law 94-329 [International Security Assist- 
ance and Arms Export Control Act of 1976; H.R, 13680], 90 Stat. 729, approved 
June 30, 1976; Public Law 95-21 [Romanian Relief and Rehabilitation; H.R. 
5717], 91 Stat. 48, approved April 18, 1977; Public Law 95-23 [Supplemental 
Military Assistance to Portugal for Fiscal Year 1977; S. 489], 91 Stat. 54, ap- 
proved April 30, 1977; Public Law 95-88 [International Development and Food 
Assistance Act of 1977; H.R. 6714], 91 Stat. 533, approved August 3, 1977; Public 
Law 95-92 [International Security Assistance Act of 1977; H.R. 6884], 91 Stat 
614, approved August 4, 1977; and Public Law 95-105 [Foreign Relations Au- 
thorization Act, Fiscal Year 1978; H.R. 6689], 91 Stat. 844 at 846, approved Au- 
gust 17, 1977. 

AN ACT To promote the foreign policy, security, and general welfare of the 
United States by assisting peoples of the world in their efforts toward eco- 
nomic development and internal and external security, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as "The Foreign Assistance Act of 1961." ^ 

1 The short title was added by Sec. Ill of the FA Appropriation Act, 1962. 

(9) 



20-818 O - 78 



10 

PART I 

Chapter 1— Policy; Development Assistance Authorizations ^ 

Sec. 101.'' S^ort Ti+le.--* * * Fl^opea Wl— 1963] 

Sec. 102.^ Statement of Policy.— (a) ^ The Conjrress declares that 

the froodom, sccnritv, and prospoiitv of tho T'^nitod Stntos nre best sus- 
tained in a rommnnity of free, secure, and prospering: nations. In par- 
ticular, the Conirress recon^iizes the threat to Avorld peace posed by ag- 
gression and subversion wherever they occur, and that ignorance, want, 
and desT^air breed tlie extremism and violence which lead to air'Tression 
and subversion. The Conirress (declares therefore that it is not only ex- 
pressive of our sense of freedom, justice, and compassion but also im- 
portant to our national security tliat the T'nited States. t]iroun:h private 
as well as public efTorts. assist the people of less developed countries in 
their efTorts to acquire the knowledire and resources essential for devel- 
opment and to build the economic, political, and social institutions 
which will meet their aspirations for a better life, with freedom^ and 
in peace. 

In addition, the Conorress declares that it is the policy of the United 
States to support the principles of increased economic cooperation and 
trade amonp: countries, freedom of the press, information, and reliction, 
freedom of navigation in international waterways, and recognition of 
the right of all private persons to travel and pursue their lawful ac- 
tivities without discrimination as to race or religion. The Congress 
further declares that any distinction made by foreign nations between 
American citizens because of race, color, or religion in the granting of, 
or the exercise of, personal or other rights available to American citi- 
zens is repugnant to our principles. 

The Congress further declares that to achieve the objectives of this 
Act, programs authorized by this Act should be carried out in accord- 
ance with the following principles : 

First, development is primarily the responsibility of the people of 
the less developed countries themselves. Assistance from the United 
States shall be used in support of, rather than substitution for, the 
self-help efforts that are essential to successful development programs, 
and shall be concentrated in those countries that take positive steps to 
help themselves. Maximum effort shall be made, in the administration 
of this Act, to stimulate the involvement of the people in the develop- 
ment process through the encouragement of democratic participation 
in private and local governmental activities and institution-building 
appropriate to the requirements of the recipient nations. 

Second, the tasks of successful development in some instances require 
the active involvement and cooperation of many countries on a multi- 
lateral basis. Therefore, to the maximum extent practicable, other 
countries shall be encouraged to increase their contributions to devel- 

2 Sec. 101(a) of the FAAct of 1963 struck out the words "Short Title and" In the 
chapter heading, which formerly read "Short Title and Policy". Sec. 2(1) of the 
FAAct of 1973 added the following words to the chapter heading: "DEVELOPMENT 
ASSISTANCE ArTHORlZATIONS" 

3 Sec. 101(b) of the FAAct. 1963, repealed former Sec. 101, which related to the short 
title. 

* 22 use § 2151. Sec. 102 was amended by Sec. 101 of the FAAct of 1967. 

6 Subsection designation "(a)" was added by Sec. 2v2)(A) of the FAAct of 1973. 

[Note. — The Foreign A-^.sistance Act will be referred to as the FAAct and "this Act". 
The Foreign Assistance and Related Programs Appropriation Act, 1977, will be referred 
to as the FA Appropriations Act, 1977.] 



b 



11 

opment programs and projects so that the cost of such common under- 
takings, which are for the benefit of all, may be shared equitably by all. 

Third, assistance shall be utilized to encourage regional cooperation 
by less developed countries in the solution of common problems and 
the development of shared resources. 

Fourth, the first objects of assistance shall be to support the efforts 
of less developed countries to meet the fundamental needs of their 
peoples for sullicient food, good health, home ownership and decent 
housing, environment and natural resources,® and the opportunity to 
gain the basic knowledge and skills required to make their own way 
forward to a brighter future. In supporting these objectives, particular 
emphasis shall be placed on utilization of resources for food produc- 
tion and voluntary family planning. 

Fifth, assistance shall wherever practicable be constituted of United 
States commodities and services furnished in a manner consistent with 
other efforts of the United States to improve its balance of payments 
position. 

Sixth, assistance shall be furnished in such a manner as to promote 
efficiency and economy in operation so that the United States obtains 
maximum possible effectiveness for each dollar spent. 

Seventh, to the maximum extent practicable, the furnishing of agri- 
cultural commodities, disposal of excess property, and United States 
payments to international lending institutions, undertaken pursuant 
to this or any other Act, shall complement and be coordinated with 
assistance provided under this part. 

It is the sense of the Congress that every effort must be made to 
obtain a ]:)ermanent peace in the Middle East. To help promote that 
objective, the United States should encourage, as part of pacific settle- 
ment, direct talks among the parties concerned, using such third party 
or United Nations assistance as they may wish. To this end, the 
President should undertake immediately (1) a thorough review of the 
needs of the several countries of that area, and (2) a reevaluation of 
United States policies aimed at helping meet those needs and securing 
a permanent peace in the area. 

It is further the sense of the Congress that in any case in which 
any foreifrn country has severed diplomatic relations with the United 
States, the President should suspend assistance to such country under 
this or any other Act, including any program designed to complement 
assistance under this Act (such as sales of agricultural commodities 
under the A.qrricultural Trade Development and Assistance Act of 
1954^). When diplomatic relations are resumed, a further study 
should be made on a country-by-country basis to determine whether 
United States foreiirn policy objectives would be served by extending 
assistance under this or any other Act, including any program 
desi^rned to complement such assistance. 

(b)* The Congress further finds and declares that, with the help of 
United States economic assistance, progress has been made in creat- 
ing a base for the economic progress of the less developed countries. 
At the same time, the conditions Avhich shaped the United States 
foreign assistance program in the past have changed. While the United 
States must continue to seek increased cooperation and mutually bene- 

« The words "environment and natural resources." were added by Sec. 113(b) of the 
International Develop^^ent and Food Assistance Act of 1977 (91 Stat. 538). 
' For text, see page 339. 
8 Subsection (b) was added by Sec. 2(2) (B) of theFAAct of 1973. 



12 

ficial relations with other nations, our relations with the less devel- 
oped countries must be revised to reflect the new realities. In 
restructurinc^ our relationships with these countries, the President 
should place appropriate emphasis on the following criteria : 

(1) Bilateral develo])ment aid should concentrate increasincfly on 
sharing American technical expertise, farm commodities, and indus- 
trial <::oods to meet critical development problems, and less on lar^e- 
scale capital transfers, which when made should be in association with 
contributions from other industrialized countries working together in 
a multilateral framework. 

(2) Future United States bilateral support for development should 
focus on critical ])roblems in tliose functional sectors which affect the 
lives of the majority of the people in the developing countries; food 
production; rural development and nutrition; population planning 
and health ; environment and natural resources ; ^ and education, pub- 
lic administration, and human resource development. 

(3) United States cooperation in development should be carried 
out to the maximum extent possible through the private sector, includ- 
ing those institutions which already have ties in the developing areas, 
such as educational institutions, cooperatives, credit unions, and 
voluntary agencies. 

(4) Development planning must be the responsibility of each sov- 
ereign country. United States assistance should be administered in a 
collaborative style to support the development goals chosen by each 
country receiving assistance. 

(5) United States bilateral development assistance should give the 
highest priority to undertakings submitted by host governments which 
directly improve the lives of the poorest of their people and their 
capacity to participate in the development of their coimtries. 

(6) The economic and social development programs to which the 
United States lends support should reflect, to the maximum extent 
practicable, the role of the United States private investment in such 
economic and social development programs. 

(7) Under the policy guidance of the Secretary of State, the agency 
primarily responsible for administering this part should have the 
responsibility for coordinating all United States development-related 
activities. 

(c)^ Assistance under this chapter should be used not simply for 
the purpose of transferring financial resources to developing coun- 
tries, but to help countries solve development problems in accordance 
with a strategy that aims to increase substantially the participation of 
the poor. Accordingly, q:reatest emphasis shall be placed on countries 
and activities which effectively involve the poor in development, by 
expanding their access to the economy through services and institu- 
tions at the local level, increasing labor-intensive production, spread- 
ing productive investment and services out from maior cities to small 
towns and outlying rural areas, and otherwise providing opportunities 
for the poor to better their lives through their OAvn effort. 

(d) ^° (1) Development assistance furnished under this chapter shall 
be increasingly concentrated in countries which will make the most 

» Subsection (c) was added by Sec. 301 of Public Law 94-161, International Develop- 
ment and Food Assistance Act of 1975 (80 Stat. 849). 

i«Snb-ection (d). as added by Sec. 301 of P'lblic Law 94-161 (89 Stat. 849). was 
amended and restated by Sec. 101(a) of the International Development and Food Assist- 
ance Act of 1977 (91 Stat. 533). 



13 

effective use of such assistance to help the poor toward a better life 
(especially such countries which are suffering from the worst and most 
widespread poverty and are in greatest need of outside assistance). 
In order to make possible consistent and informed judgments concern- 
ing which countries will make the most effective use of such assistance, 
the President shall propose appropriate criteria and factors to assess 
the commitment and progress of countries in meeting the objectives 
set forth in subsection (c) of this section and in other sections of this 
chapter. In developing such criteria and factors, the President shall 
specifically take into account their value in assessing countries' actions 
which demonstrate genuine concern and effective action for materially 
improving the lives of the poor and their ability to participate in 
development, including but not limited to efforts to — 

(A) increase agricultural productivity per unit of land through 
small-farm, labor-intensive agriculture; 

(B) reduce infant mortality ; 

(C) control population growth ; 

(D) promote greater equality of income distribution, including 
measures such as more progressive taxation and more equitable 
returns to small farmers ; and 

(E) reduce rates of unemployment and underemployment. 

A report on such proposed criteria and factors shall be transmitted to 
the Speaker of the House of Representatives and the Committee on 
Foreign Eolations of the Senate by Januarv 81, 1978. 

(2) The President shall endeavor to bring about the adoption of 
similar criteria and factors by international development organiza- 
tions in which the United States participants. 

(3) Presentation materials submitted to the Congress with respect 
to assistance under this chapter, beginning with fiscal year 1977, shall 
contain detailed information concerning the steps being taken to 
implement this subsection. 

(e)^^ For the purpose of promoting economic growth in the poorest 
countries, the President is authorized, notwithstanding any other pro- 
vision of law, to make assistance under this chapter available to the 
relatively l/^ast developed countries on a grant basis to the maximum 
extent that is consistent with the attainment of United States develop- 
ment objectives. 



Note. — Foreign Assistance Appropriations Act, 1978, "Loan 
allocation. Development Assistance : Of the new obligational au- 
thority appropriated under this Act to carry out the provisions 
of section 103-106, not less than $310,500,000 shall be available 
for loans for fiscal year 1978: Provided^ That of this amount 
$75,000,000 shall be available for loans repayable within forty 
years following the date on which the funds were initially made 
available under such loans; $87,000,000 shall be available for 
loans repayable within thirty years following such date; and 
$148,500,000 of such amount shall be available for loans repay- 
able within twenty years following such date." 



"Subsection (e) was added by Sec. 101(b) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 534). 



14 



Note. — Prior Notification. Foreign Assistance Appropriations 
Act, 1978 : "None of the funds made available under this Act for 
"Food and nutrition, Development Assistance,'' "Population 
planning. Development Assistance," "Health, Development As- 
sistance," "Education and human resources development. Devel- 
opment Assistance," "Technical assistance, energy research, re- 
construction, and selected development problems. Development 
Assistance," "International organizations and programs," "Amer- 
ican schools and hospitals abroad," "Sahel development pro- 
gram," "International narcotics control," "Middle East special 
requirements fund," "Security supporting assistance," "Operat- 
ing Expenses of the Agency for International Development," 
"Military assistance," "International military education and 
training," "Foreign military credit sales," "Inter-American 
Foundation," "Peace Corps," or "Migration and refugee assist- 
ance," shall be available for obligation for activities, programs, 
projects, type of materiel assistance, countries, or other operations 
not justified or in excess of the amount justified to the Appropri- 
ations Committees for obligation under any of these specific 
headings for fiscal year 1978 unless the Appropriations Commit- 
tees of both Houses of the Congress are previously notified fifteen 
days in advance." 



Note. — ^The amounts appropriated by the Foreign Assistance 
and Related Programs Appropriations Act, 1978, appear as foot- 
notes to respective authorizations in the Foreign Assistance Act 
of 1961, as amended. Sec. 102 of the Foreign Assistance and Re- 
lated Programs Appropriations Act, 1978, states : "Except for the 
appropriations entitled 'Contingency fund', 'International disas- 
ter assistance', and United States emergency refugee and migra- 
tion assistance fund", not more than 20 per centum of any appro- 
priation item made available by this Act for fiscal year 1978 shall 
be obligated or reserved during the last month of availability." 



Sec. 103.^^ Food and Nutrition. — (a) ^^ In order to alleviate starva- 
tion, hunger, and malnutrition, and to provide basic services to poor 
people, enhancing their capacity for self-help, the President is author- 
ized to furnish assistance, on such terms and conditions as he may de- 
termine, for agriculture, rural development, and nutrition. There are 
authorized to be appropriated to the President for the purposes of this 
section, in addition to funds otherwise available for such purposes, 
$745,000,000 for the fiscal year 1977 and $580,000,000 for the fiscal 
year 1978, which amounts are authorized to remain available until 
expended.^* 



"22 use 2151a. Sec. 103 was added bv Sec. 2(3) of the FAAct of 1973. 

13 Subsection designation "(a)" was ar'ded by Sec. 2(1) of the FAAct of 1974. 

1* Figxires for fiscal year 1978 were added by Sec. 102 of the International Development 
and Food Assistance Act of 1977 (91 Stat. 534). Authorizations for recent years included : 
FY 1974— $291,000,000 ; FY 1975 — $500,000,000 ; FY 1976 — $618,000,000. 

FA Appropriations Act, 1978 : "For necessary expenses to carry out the provisions of 
section 103, $515,000,000." 



15 

(b)^^ The Congress finds that, due to rising world food, fertilizer, 
and petroleum costs, human suti'ering and deprivation are growing in 
the poorest and most slowly developing countries. The greatest poten- 
tial for significantly expanding world food production at relatively low 
cost lies in increasing the productivity of small farmers who constitute 
a majority of the nearly one billion people living in those countries. In- 
creasing the emphasis on rural development and expanded food pro- 
duction in the poorest nations of the developing world is a matter of 
social justice as well as an important factor in slowing the rate of infla- 
tion in the industrialized countries. In the allocation of funds under 
this section, special attention should be given to increasing agricultural 
production in the countries with per capita incomes under $300 a year 
and which are the most severely affected by sharp increases in world- 
wide commodity prices. 

(c)^*^ Assistance provided under this section shall be used primarily 
for activities which are specifically designed to increase the produc- 
tivity and income of the rural poor, through such means as creation 
and strengthening of local institutions linked to the regional and 
national levels ; organization of a system of financial institutions which 
provide both savings and credit services to the poor; stimulation of 
small, labor-intensive enterprises in rural towns; improvement of mar- 
keting facilities and systems; expansion of local or small-scale rural 
infrastructure and utilities such as farm-to-market roads, land 
improvement, energy, and storage facilities; establishment of more 
equitable and more secure land tenure arrangements; and creation and 
strengthening of systems to provide other services and supplies needed 
by farmers, such as extension, research, training, fertilizer, water, and 
improved seed, in ways which assure access to them by small farmers. 

(d)" Foreign currency proceeds from sales of commodities pro- 
vided under the Agricultural Trade Development and Assistance Act 
of 1954 which are owned by foreign governments shall be used when- 
ever practicable to carry out the provisions of this section. 

(e) ^^ In order to carry out the purposes of this section, the President 
is authorized to participate in and provide, on such terms and condi- 
tions as he may determine, up to $200,000,000 to the International Fund 
for Agricultural Development. There is authorized to be appropriated 
to the President without fiscal year limitation $200,000,000 for such 
contribution.^^ 

(f ) ^^ No funds may be obligated to carry out subsection (e) unless — 

(1) satisfactory agreement is reached on the Articles of Agree- 
ment for tlie International Fund for Agricultural Development; 

(2) such Articles of Agreement are reviewed and approved 
by the Senate Committee on Foreign Relations and the House 
Committee on International Relations; 

(3) all donor commitments to the International Fund for 
Agricultural Development total at least $1,000,000,000 equivalent 
in convertible currencies, except that the United States contribu- 

15 Subsection (b) wns added by Sec. 2(3) of the FAAct of 1974. 

"Sec. 302(2) of Public Law 94-161 (89 Stat. 849) added subsections (c), (d), (e), (f) 
ana ijri. 

1' Second Supplemental Appropriation Act, 1976 (Public Law 94-303) provides. 'Tor 
p-^ymont to the International Fund for Agricultural Development, as authorized by section 
]().S(e) of the Fofeijrn Assistance Act of 1961. as amended, $200,000,000. to remain 
available until expended: Provided, That the fun-is made avallnhV in this paracraph 
Shall not ^p ohlijjated or expended until proper justification of the obligation or expenditure 
<n such funds is provi^^ed to the Committees on Appropriations of the Senate and the 
House of Representatives." 



16 

tion shall be proportionally reduced if this combined goal is not 
met; and 

(4) there is equitable burden sharing among the different 
categories of contributors. 

(g)^^ The President shall submit to the Congress full and complete 
data concerning United States participation in, and operation of, the 
International Fund for Agricultural Development in the annual 
presentation materials on proposed economic assistance programs. 

(h)^^ Of the funds authorized to be appropriated by this section 
for the fiscal year 1978, the President is requested to commit up to 
$60,000,000 for the purposes of assisting India with foreign exchange 
costs incurred in connection with the construction of grain storage 
facilities or other purposes specified in this section. 

Sec. 103A.^^ Agricultural Research. — Agricultural research car- 
ried out under this Act shall (1) take account of the special needs of 
small farmers in the determination of research priorities, (2) include 
research on the interrelationships among technology, institutions, and 
economic, social, and cultural factors affecting small- farm agriculture, 
and (3) make extensive use of field testing to adapt basic research to 
local conditions. Special emphasis shall be placed on disseminating 
research results to the farms on which they can be put to use, and 
especially on institutional and other arrangements needed to assure 
that small farmers have effective access to both new and existing 
improved technology. 

Sec. 104." Population Planning and Health. — (a)^^ In order to 
increase the opportunities and motivation for family planning and 
to reduce the rate of population growth, the President is authorized 
to furnish assistance, on such terms and conditions as he may deter- 
mine, for population planning. There are authorized to be appro- 
priated to the President for the purposes of this subsection, in addi- 
tion to funds otherwise available for such purposes, $167,000,000 for 
the fiscal year 1978, which amount is authorized to remain available 
until expended." 

(b)2^ In order to prevent and combat disease and to help provide 
health services for the great majority, the President is authorized to 
furnish assistance, on such terms and conditions as he may determine, 
for health, disease prevention, and environmental sanitation. There are 
authorized to be appropriated to the President for the purposes of this 
subsection, in addition to funds otherwise available for such purposes, 
$107,700,000 for the fiscal year 1978, which amount is authorized to 
remain available until expended.^^ 



18 Subsection (h) was added by Sec. 102(b) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 534). 

18 22 use 2151a-l. Sec. 103A was added by Sec. 303 of Public Law 94-161 (89 Stat. 
849). 

20 22 use 2151b. Sec. 104 was added by Sec. 2(3) of the FAAct of 1973. 

21 Sec. 103 of the International Development Assistance Act of 1977 (91 Stat. 534) 
amended and restated subsection (a), added a new subsection (b), and redesignated the 
present subsection (b) as (c). 

22 Authorizations of funds under Sec. 104 (a) for recent fiscal years included the follow- 
ing (prior to FY 1978, subsection (a) included authorization for population planning 
and health: the authorization for health is now found in subsection (b)) : FY 1974 — 
$145,000,000; FY 1975— $165,000,000 ; FY 1976— $243,100,000 ; FY 1977— $275,600,000. 

FA Appropriations Act. 1978 : "For necessary expenses to carry out the provisions of 
section 104(a). $155,000,000." 

23 FA Appropriations Act, 1978. "For necessary expenses to carry out the provisions of 
section 104(b), $95,000,000: Provided, That $2,000,000 shall be available for the World 
Health Organization Onchocerciasis Control Program." 



17 

(c)^* Assistance provided under this section shall be used primarily 
for extension of low-cost, integrated delivery systems to provide health 
and family planning services, especially to rural areas and to the poor- 
est economic sectors, using paramedical and auxiliary medical person- 
nel, clinics and health posts, commercial distribution systems, and 
other modes of community outreach ; health programs which empha- 
size disease prevention, environmental sanitation, and health educa- 
tion; and population planning programs which include education in 
responsible parenthood and motivational programs, as well as deliv- 
ery of family planning services and which are coordinated with pro- 
grams aimed at reducing the infant mortality rate, providing better 
nutrition to pregnant women and infants, and raising the standard of 
living of the poor. 

(d)^^(l) Assistance under this chapter shall be administered so 
as to give particular attention to the interrelationship between (A) 
population growth, and (B) development and overall improvement 
m living standards in developing countries, and to the impact of all 
programs, projects, and activities on population growth. AH appro- 
priate activities proposed for financing under this chapter shall be 
designed to build motivation for smaller families in programs such as 
education in and out of school, nutrition, disease control, maternal 
and child health services, agricultural production, rural development, 
and assistance to the urban poor. 

(2) The President is authorized to study the complex factors affect- 
ing population growth in developing countries and to identify factors 
which might motivate people to plan family size or space their 
children. 

Sec. 105.26 Education and Human Resources Development. — 
(a) 2^ In order to reduce illiteracy, to extend basic education and to in- 
crease manpower training in skills related to development, the Presi- 
dent is authorized to furnish assistance on such terms and conditions as 
he may determine, for education, public administration, and human re- 
source development. There are authorized to be appropriated to the 
President for the purposes of this section, in addition to funds other- 
wise available for such purposes, $101,800,000 for the fiscal year 
1977 and $84,900,000 for the fiscal year 1978, which amounts are au- 
thorized to remain available until expended.^^ 

(b)29 Assistance provided under this section shall be used primarily 
to expand and strengthen nonformal education methods, especially 
those designed to improve productive skills of rutal families and the 
urban poor and to provide them with useful information ; to increase 
the relevance of formal education systems to the needs of the poor, 

2* This subsection, as originally added by Sec. 304(4) of Public Law 94-161 (89 Stat, 
849), was redesignated as subsection (c) by Sec. 103(b) of the International Development 
and Food Assistance Act of 1977 (91 Stat. 534). 

2s Subsection (d) was added by Sec. 103(c) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 534). 

« 22 use 21olc. Sec. 105 was added by Sec. 2(3) of the FAAct of 1973. 

"Sec. 305(1) of Public Law 94-161 (89 Stat. 849) added subsection designation "(a)". 

28 The authorization for fiscal year 1978 was added by Sec. 104(a) of the International 
Development and Food Assistance Act of 1977 (91 Stat. 535). Authorizations for recent 
years included the following : FY 1974— $90,000,000 ; FY 1975— $92,000,000 ; FY 1976— 
$89,200,000. 

FA Appropriations Act, 1978 : "For necessary expenses to carry out the provisions of 
section 105, $76,000,000." 

»Sec. 305(3) of Public Law 94-161 (89 Stat. 849) added subsections (b) and (c). 



18 

especially at the primary level, through reform of curricula, teaclujig 
uiaterials, and teacliing methods, and improved teacher training; and 
to strengthen the management capabilities of institutions which enable 
the poor to participate in devel()[)menL. 

(c)^^ Of the amount authorized to be appropriated by subsection 
(a), not less than $1,000,000 shall be available for the fiscal year 1977, 
and not less than $1,647,000 shall be available for the fiscal year 1978,^° 
to support the southern African student program and the southern 
African training program, for the purpose of providing educational 
assistance to Southern Africans. 

Sec. 106.^^ Technic?! Assistance, Energy, Research, Recon- 
struction, and Selected Development Problems. — (a) Tlie President 
is autl orized to furnish assistance, on such terms and conditions as he 
may determine, for the following activities, to the extent that such 
activities are not authorized by sections 103, 104, and 105 of this Act: 

(1) programs of technical cooperation and development, par- 
ticularly the development efforts of United States private and 
voluntary agencies and regional and international development 
organizations ; 

(2) programs to help developing countries alleviate their 
energy problems by increasing their production and conservation 
of energy, through such means as research and development of 
suitable energy sources and conservation metliods, collection and 
analysis of information concerning countries' potential supplies 
of and needs for enei-gy. and pilot projects to test new metnods 
of production or conservation of energy ; 

(3) programs of research into, and evaluation of, the process 
of economic deve'opmont in less (levelo]icd countries and areas, 
into the factors affecting the relative success and costs of develop- 
ment activities, and into the means, techniques, and such other 
aspects of development assistance as the President may determine 
in order to render such assistance of increasing value and benefit ; 

(4) programs of reconstruction following natural or manmade 
disasters ; 

(5) programs designed to help solve special development prob- 
lems in the poorest countries and to make possible proper utiliza- 
tion of infrastructure and related projects funded with earlier 
United States assistance ; and 

(6) programs of urban development, with particular emphasis 
on small, labor intensive enterprises, marketing systems for small 
producers, and financial and other institutions which enable the 
urban poor to participate in the economic and social development 
of their country. 

(b) There is authorized to be appropriated to the President for 
the purposes of this section, in addition to funds otherwise available 

30 The words to this point, beginning with "for the fiscal year 1977, * * *", were added 
by Sec. 104(b) of the International Development and Food Assistance Act of 1977 (91 
Stat. 535^. 

8122 use 2151d. Sec. 306(1) of Public Law 94-161 (89 Stat. 849) repealed Sees. 106, 
107 and 241. Former Sec. 106 read as follows : "Sec. 106. Selected Development Problems. 
The President is authorized to furnish assistance on such terms and conditions as he 
may determine, to help solve economic and social development problems in fields such 
as transportation, power, industry, urban development, and export development. There 
are authorized to be appropriated to the President for such purposes, $53,000,000 for each 
of the fiscal years 1974 and 1975 which amounts are authorized to remain available 
until expended." 



19 

for such purposes, $104,500,000 for the fiscal year 1977 and $105,000,- 
000 for the fiscal year 1978,^^ which amounts are authorized to remain 
available until expended. Of the amounts made available under this 
section, not less than $30,000,000 shall be available during the period 
beginning July 1, 1975, and ending September 30, 1977, only for 
reimbursement to private voluntary agencies of the United States for 
costs incurred with respect to the shipment of food and nonfood 
commodities provided through private donations. 

Sec. 107.^^ Intermediate Technology. — Of the funds made avail- 
able to carry out this chapter for the fiscal years 197(5, 1977, and 1978, 
a total of $1^0,000,000 may be used for activities in the field of inter- 
mediate technology, through grants in support of an expanded and 
coordinated private etiort to promote the development and dissemina- 
tion of technologies appropriate for developing countries. The Agency 
for International Development shall prepare a detailed proposal to 
carry out this section and shall keep the Senate P^oreign Relations 
Committee and the House International delations Committee fully 
and currently informed concerning the development of the proposal. 
The proposal shall be transmitted to these committees no later than 
March 31, 1976, and shall not be implemented until thirty days after 
its transmittal or until passage by each committee of a resolution in 
effect approving its implementation. 

Sec. 108.3^ Application of Existing Provision. — Assistance under 
this chapter shall be furnished in accordance with the provisions of 
titles 1, II, or X of chapter 2 of this part, and nothing m this chapter 
shall be construed to make inapplicable the restrictions, criteria, au- 
thorities, or other provisions of this or any other Act in accordance with 
which assistance furnished under this chapter would otherwise have 
been provided. 

Sec. 109.35 Transfer of Funds. — Notwithstanding section 108 of 
this Act, whenever the Piesident determines it to be necessary for the 
purposes of this chapter, not to exceed 15 per centum of the funds made 
available for any provision of this chapter may be transferred to, and 
consolidated with, the funds made available for any other provision 
of this chapter, and may be used for any of the purposes for which 
such funds may be used, except that the total in the provision for the 
benefit of which the transfer is made shall not be increased by more 
than 25 per centum of the amount of funds made available for such 
provision. The authority of sections 610(a) and 614(a) of this Act 
may not be used to transfer funds made available under this chapter 
for use for purposes of any other provision of this Act except that 
the authority of such sections may be used to transfer for the purposes 

32 The authorization for fiscal year 1978 was added by Sec. 105 of the International De- 
velopment and Food Assistance Act of 1977 (91 Stat. 535). The authorization for FY 
1976, which was struck by Sec. 105, was $99,550,000. 

FA Appropriations Act, 1978 : "For necessary expenses to carry out the provisions of 
section 106. $90,000 000." 

3-22 use 2151e. Sec. 306(1) of Public Law 94-161 (89 Stat. 849) repealed Sees. 106, 
107 and 241. Former Sec. 107 reads as follows : "Sec. 107. Selected Countries and Organi- 
zations. — The President is authorized to furnish assistance on such terms and conditions 
as he may determine, in support of the general economy of recipient countries or for 
development programs conducted by private or international organizations. There are 
authorized to be appropriated to the President for the purposes of this section, in addi- 
tion to funds otherwise available for such purposes, $39,000,000 for each of the fiscal years 
1974 and 1975. which amounts are authorized to remain available until expended." 

2*22 use 2151f. Sec. 108 was added by Sec. 2(3) of the FAAct of 1973. 

35 22 use 2151g. Sec. 109 was added by Sec. 2(3) of the FAAct of 1973. 



20 

of section 667 not to exceed five per centum of the amount of funds 
made available for section 667(a) (1).^*^ 

Sec. 110.^^ Cost-Sharing and Funding Limits. — (a) No assistance 
shall be furnished by the United States Government to a country under 
sections 108 through 106 of this Act until the country provides assur- 
ances to the President, and the President is satisfied, that such country 
provide at least 25 per centum of the costs of the entire program, proj- 
ect, or activity with respect to which such assistance is to be furnished, 
except that such costs borne by such country may be provided on an 
"in-kind'' basis and except that the President may waive this cost- 
sharing requirement in the case of a project or activity in a country 
which the agency primarily responsible for administering part I of 
this Act determines is relatively least developed based on the United 
Nations Conference on Trade and Development list of "relatively 
least developed countries".^* 

(b) Except for grants to countries determined to be relatively least 
developed based on the United Nations Conference on Trade and 
Development list of '"relatively least develoDcd coiiiitries'V^ no grant 
assistance shall be disbursed by the United States Government under 
sections 103 through 106 of this Act for a project, for a period exceed- 
ing thirty-six consecutive months, without further justification satis- 
factory to the Congress and efforts being made to obtain sources of 
financing within that country and from other foreign countries and 
multilateral organizations. 

Sec. 111.^° Development and Use of Cooperatives. — In order to 
strengthen the participation of the rural and urban poor in their 
country's development, high priority shall be given to increasing the 
use of funds made available under this Act for technical and capital 
assistance in the development and use *^ of cooperatives in the less 
developed countries which will enable and encourage greater numbers 
of the poor to help themselves toward a better life. Not less than 
$10,000,000 of the funds made available under tliis Act for the fiscal 
year 1978 may be used only for technical assistance to carry out the 
purposes of this section.^^ 

Sec. 112.^^ Prohibiting Police Training.—* * * [Repealed— 1974] 

30 The words to this point beginning with "except that the authority of such sections 
* * *" were added by Sec. 12i)(b) of the International Development and Food Assistance 
Act of 1977 (91 Stat 543) 

37 22 use 215h. Sec. 110 was added by Sec. 2(3) of the FAAct of 1973. See note 
in box, page 13. 

38 The words to this point commencing with "and except that the President may 
waive * * * " were added by Sec. 307 of Public Law 94-161 (89 Stat. 849). 

* The words to this point in subsection (b) were added by Sec. 106(2) of the Interna- 
tional Development and Food Assistance Act of 1977 (91 Stat. 535). 

*«22 use 21511. Sec. Ill, which was added by Sec. 2(3) of the FAAct of 1973 was 
amended by Sec. 308 of Public Law 94-161 (89 Stat. 849). It formerly read as follows: 
"In order to strengthen the participation of the urban and rural poor in their country's 
development, not less than $20,000,000 of the funds made available for the purposes of this 
chapter shall be available during the fiscal year 1974 and 1975 only for assistance in the 
less developed countries which will enable and encourage greater numbers of the poor to 
help themselves toward a better life." 

" The words "technical and capital assistance in the development and use" were in- 
serted in lieu of "assistance in the development " by Sec. 107(a) of the International Devel- 
opment and Food Assistance Act of 1977 (91 Stat. 535) 

<2 Tills sentence was amended and restated by Sec. 107(a) (2) of the International Devel- 
opment and Food Assistance Act of 1977 (91 Stat. 535). It formerly read as follows: 

"Not less than $20,000,000 of such funds shall be used during the fiscal years 1976 and 
1977. including the period from July 1, 1976 through September SO, 1976, only for techni- 
cal assistance to carry out the purposes of this section." 

*3 Sec. 112, which was added by Sec. 2(3) of the FAAct of 1973, was repealed by Sec. 
30(b) of the FAAct of 1974. (See Sec. G60 of this Act, "Prohibiting Police Training", 
p. 162.) 



21 

Sec. 113.^2 Integrating Women Into National Economies, — 

(a) In recognition of the fact that women in developing countries play 
a significant role in economic production, family support, and the over- 
all development process of the national economies of such countries, 
this part shall be administered so as to give particular attention to 
those programs, projects, and activities which tend to integrate women 
into the national economies of developing countries, thus improving 
their status and assisting the total development effort. 

(b) The President shall transmit to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of the 
Senate a report on the impact of development programs, projects, and 
activities on the integration of women into the developing economies 
of countries receiving assistance under this part. The report shall 
include — 

(1) an evaluation of progress toward developing an adequate 
data base on the role of women in the national economies of 
recipient coimtries; 

(2) a specific description of the efforts undertaken to imple- 
ment subsection (a) ; and 

(3) an evaluation of the effectiveness of such efforts. 

(c) The report required by subsection (b) shall be transmitted not 
later than one year after the date of enactment of this subsection. 

Sec. 114.^* Limiting Use of Funds for Abortions or Involuntary 
Sterilizations. — None of the funds made available to carry out this 
part shall be used to pay for the performance of abortions as a method 
of family planning or to motivate or coerce any person to practice 
abortions. 

(b) None of the funds made available to carry out this part shall 
be used to pay for the performance of involuntary sterilizations as a 
method of family planning or to coerce or provide any financial 
incentive to any person to practice sterilizations. 

Sec. 115.^^ Prohibiting Use of Funds for Certain Countries. — 
(a)^^ None of the funds made available to carry out this chapter 
may be used in any fiscal year for any country to which assistance is 
furnished in such fiscal year under chapter 4 of part II (security sup- 
porting assistance) or under part VI (assistance for Middle East 
peace) unless the Congress has specifically authorized such use of those 
funds. The specific authorization requirement of this subsection shall 
be deemed to be satisfied if the purpose for which funds are to be used 
is described in the presentation materials submitted to the Congress 

«22 use 2251k. Sec. 11'3, as added by Sec. 2(3) of the FAAct of 1973, was amended 
and restated by Sec. 108 of the International Development and Food Assistance Act of 
1977 (91 Stat. 536). Sec. 113 formerly read as follows : 

"Sec. 113. Integrating Women Into National Economies. — Part I of this Act shall 
be administered so as to give particular attention to those programs, projects, and activi- 
ties which tend to integrate women into the national economies of foreign countries, thus 
improving their status and assisting the total development effort." 

^*USC 21511. Sec. 114 was added by Sec. 2(3) of the FAAct of 1973. The references 
to "Involuntary Sterilization" in the section title and subsection (b) were added by Sec. 
109 of the International Development and Food Assistance Act of 1977 (91 Stat. 536). 

« 22 use 2151m. Sec. 115 was added by Sec. 20 of the FAAct of 1974. 

*« Subsection (a) was amended and restated by Sec. 110 of the International Develop- 
ment and Food Assistance Act of 1977 (91 Stat. 530). It formerly read as follows: 

"(a) None of the funds made available to carry out this chapter may be used in any 
fiscal year for any country to which assistance is furnished in such fiscal year under 
chapter 4 of part II (security supporting assistance), part V (assistance for relief and 
reconstruction of South Vietnam, Cambodia, and Laos), part VI (assistance for Middle 
East peace) of this Act, or section 36 of the Foreign Assistance Act of 1974." 



22 

on proposed development assistance procrrams for the fiscal year in 
question and the Congress indicates its approval of such use in the 
legislation authorizing development assistance programs for such 
fiscal year. 

(b) The prohibition contained in subsection (a) may not be waived 
under section 614(a) of this Act or under any other provision of law. 

(c) This section shall not apply to funds made available under 
section 104 for purposes of title X of chapter 2 of this part (programs 
relating to population growth), funds made available for humanitar- 
ian assistance through international organizations, and funds obli- 
gated for regional programs. 

Sec. 116.''^ Human Rights. — (a) No assistance may be provided 
under this pail to the government of any country which engages in a 
consistent pattern of gross violations of internationally recognized 
human rights, including torture or cruel, inhuman, or degrading treat- 
ment or punishment, prolonged detention without charges, or other 
flagrant denial of the right to life, liberty, and the security of person, 
unless such assistance will directly benefit the needy people in such 
country. 

(b) In determining whether this standard is being met with regard 
to funds allocated under this part, the Committee on Foreign Rela- 
tions of the Senate or the Committee on International Relations of the 
House of Representatives may require the Administrator primarily 
responsible for administering part I of this Act to submit in writing 
information demonstrating that such assistance will directly benefit 
the needy people in such country, together with a detailed explana- 
tion of the assistance to be provided (including the dollar amounts of 
such assistance) and an explanation of how such assistance will di- 
rectly benefit the needy people in such country. If either committee or 
either House of Congress disagrees with the Administrator's justi- 
fication it may initiate action to terminate assistance to any country 
by a concurrent resolution under section 617 of this Act. 

(c)'"^ In determining whether or not a government falls within the 
provisions of subsection (a) and in formulating development assist- 
ance programs under this part, the Administrator shall consider, in 
consultation Avith the Assistant Secretary ^^ for Human Rights and 
Humanitarian Affairs — 

(1) the extent of cooperation of such government in permitting 
an unimpeded investigation of alleged violations of interna- 
tionally recognized human rights by appropriate international 
organizations, includinor the International Committee of the Red 



"use 2151n. Sec. 116 was added by Sec. 310 of Public Law 94-161 (89 Stat. 849). 

^8 Sec. Ill of the International Development and Food Assistance Act of 1977 (91 Stat. 
537) amended and restated subsections (c) and (d), and added a new subsection (e). 
Subsections (c) and (d) formerly read as follows : 

"(c) In determining whether or not a government falls within the provisions of sub- 
section (a), consideration shall be given to the extent of cooperation of such govern- 
ment in permitting an unimpeded investigation of alleged violations of internationally 
recognized human rights by appropriate international organizations, including the In- 
ternational Committee of the Red Cross, or groups or persons acting under the authority 
of the United Nations or of the Organization of American States. 

"(d) The President shall transmit to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate, in the annual presentation materials 
on proposed economic development assistance programs, a full and complete report re- 
garding the steps he has taken to carry out the provisions of this section." 

40 The words "Assistant Secretary" were inserted in lieu of "Coordinator" by Sec. 
109(a)(2) of the Foreign Relations Authorization Act, Fiscal Year 1978 (91 Stat. 846). 



I 



23 

Cross, or groups or persons acting under the authority of the 

United Nations or of the Organization of American States ; and 

(2) specific actions which have been taken by the President or 

the Congress relating to multilateral or security assistance to a 

less developed countiy because of the human rights practices or 

policies of such country. 

(d)^^ The Secretary of State shall transmit to the Speaker of the 

House of Representatives and the Committee on Foreign Relations of 

the Senate, by January 31 of each year, a full and complete report 

regarding — 

(1) the status of internationally recognized human rights, 
within the meaning of subsection (a), in countries that receive 
assistance under this part ; and 

(2) the steps the Administrator has taken to alter United 
States programs under this part in any country because of human 
rights considerations. 

(e)*^ Of the funds made available under this chapter for the fiscal 
year 1978, not less than $750,000 may be used only for studies to iden- 
tify, and for openly carrying out, programs and activities which will 
encourage or promote increased adherence to civil and political rights, 
as set forth in the University Declaration of Human Rights, in coun- 
tries eligible for assistance under this chapter. None of these funds 
may be used, directly or indirectly, to influence the outcome of any 
election in any country. 

Sec. 117.^*' infant Nutrition. — The President is encouraged (1) to 
devise and carry out in partnership with developing nations a strategy 
for programs of nutrition and health improvement for mothers and 
children, including breast-feeding, and (2) to provide technical, 
financial, and material support to individuals or groups at the local 
level for such programs. 

Sec. 118.^^ Environment and Natural Resources. — The President 
is authorized to furnish assistance under this part for developing and 
strengthening the capacity of less developed countries to protect and 
manage their environment and natural resources. Special efforts shall 
be made to maintain and where possible restore the land, vegetation, 
water, wildlife, and other resources upon which depend economic 
growth and human well-being, especially that of the poor. 

Sec. 119.^^ Renewable and Unconventional Energy Technolo- 
gies. — (a) (1) The President is authorized to furnish assistance under 
this chapter for cooperative programs with developing countries in 
energy production and conservation, with particular emphasis on pro- 
grams in research, development, and use of small-scale, decentralized, 
renewable energy sources for rural areas carried out as integral parts 
of rural development efforts in accordance with section 103 of this Act. 
Programs under this subsection shall be undertaken, whenever appro- 
priate, in cooperation with the Energy Research and Development 

so 22 use 21510. Sec. 117 was added by Sec. 112 of the International Development 
and Food Assistance Act of 1977 (91 Stat. 537). 

6122 TTSC 2151p. Sec. 118 was added by Sec. 113 of the International Development 
and Food Assistance Act of 1977 (01 Stat. 537). 

63 Sec. 119 was added by Sec. 114 of the International Development and Food Assistance 
Act of 1977 (91 Stat. 538). 



24 

Administration or its sucx^essor and shall be carried out, to the greatest 
extent possible, through and in conjunction with activities under sec- 
tion 107 of this Act. These programs shall be directed toward the 
earliest practicable development and use of energy technologies which 
are environmentally acceptable, require minimum capital investment, 
are most acceptable to and affordable by the people using them, are 
simple and inexpensive to use and maintain, and ai*e transferable from 
one region of the world to another. 

(2) Of the funds made available to carry out this chapter for the 
fiscal year 1978, up to $18,000,000 are to be used for carrymg out this 
subsection. 

(b)(1) In furtherance of the purposes of this section, the Presi- 
dent is authorized to carry out studies to identify the energy needs, 
uses, and resources which exist in developing countries. The results of 
the studies conducted under this subsection shall be reported to the 
Congress by March 1, 1978. 

(2) Tlie x\gency for International Development, in cooperation 
with the Energy Research and Development Administration or its suc- 
cessor, shall conduct a review of the options for implementing the pur- 
poses of this section, one of which shall l)e a proposal for a nonprofit 
Government corporation (which would be designated as the Interna- 
tional Energy Institute) outside the Agency for International Devel- 
opment. The President shall submit a comprehensive report on such 
review to the Speaker of the House of Representatives and the Com- 
mittee on Foreign Relations of the Senate by January 31, 1978, 
together with his recommendations as to which option should be 
implemented. 

Sec. 120.'^ Sahel Development Prot^ram — Planning:,^'* — (r) The 
Congress reaffirms its support of " the initiative of the United States 
Government in undertaking consultations and planninc: wnth the coun- 
tries concerned, and with other nations providing assistance, with the 
United Nations, and wnth other concerned international and regional 
organizations, toward the development and support of a comprehen- 
sive long-term African Sahel development program. 

(b) ^^ The President is authorized to develop a long-term compre- 
hensive development program for the Sahel and other drought- 
stricken nations in Africa. 

(c) ^^ In developing this long-term program, the President shall- — 

(1) consider international coordination for the planning and 
implementation of such program ; 

(2) seek greater participation and support by African coun- 
tries and organizations in determining development priorities; 
and 

(3) begin such planning immediately. 

5^-22 use 2151r. Sec. 120, originally added as Sec. 639B bv Sec. 20 of the F\A^t of i973 
and later redeslernated as Sec. 494B by Sec. 101(5) of Public Law 94-161 (89 Stat. 849), 
was apain redesi{?nated as Sec. 120 by Sec. 115(1) of the International Development and 
Food Assistance Act of 1977 (91 Stat. 539). 

^ The title caption "Sahel Development Program — Planning" was inserted in lieu of 
"African De elopment Program" by Sec. 115(2) of the International Development and 
Food Assistance Act of 1977 (91 Stat. 539). 

55 The worr's "reaffirms its support of" were substituted In lieu of "supports" bv Sec. 
101(7) (C) of Public Law 94-161 (89 Stat. 849). 

« Subsections (b), (c), and (d) were added by Sec. 101(7) (D) of Public Law 94-161 
(89 Stat. 849). 



25 

(d) ^® There is authorized to be appropriated to the President, to 
carry out the purposes of this section, in addition to funds otherwise 
available for such purposes, $5,000,000 for the fiscal year 1976,^^ which 
amount is authorized to remain available until expended. The Presi- 
dent shall submit to the Foreign Relations and Appropriations Com- 
mittees of the Senate and the International Relations and Appro- 
priations Committees of the House of Representatives not later than 
April 30, 1976, a comprehensive proposal for carrying out the provi- 
sions of this section which shall include budget materials relating to 
programs for the fiscal year 1977. 

Sec. 121.^^ Sahel Development Program — Implementation. — (a) 
The President is authorized to furnish assistance, on such terms and 
conditions as he may determine, for the long-term development of the 
Sahelian region. Assistance furnished under this section shall be in 
accordance with a long-term, multidonor development plan which calls 
for equitable burdensharing with other donors and shall be furnished, 
whenever appropriate, in cooperation with an international coordinat- 
ing mechanism. 

(b) The President shall prepare an annual report on the Sahel 
Development Program concerning the allocation of the United States 
contribution to the Program, the extent of the contributions from 
other donor countries, the effectiveness of the integrated effort through 
the Club des Amis du Sahel, and the progress made in achieving the 
objectives of the Program. 

(c) There are authorized to be appropriated to the President for 
purposes of this section beginning in the fiscal year 1978, in addi- 
tion to funds otherwise available for such purposes, $2()0,000,000, 
except that not to exceed $50,000,000 may be appropriated under this 
section for the fiscal year 1978. Amounts appropriated under this 
section are authorized to remain available until expended.^^ 

Chapter 2 — Development Assistance 

Title I — Development Loan Fund 

Sec. 201."^*^ General Authority.— (a) The President shall establish 
a fund to be known as the "Development Loan Fund" to be used by 
the President to make loans pursuant to the authority contained in 
this title. 

(b) The President is authorized to make loans payable as to princi- 
pal and interest in United States dollars on such terms and conditions 
as he may determine, in order to promote the economic development 
of less developed friendly countries and areas, with emphasis upon 
assisting long-range plans and programs designed to develop eco- 
nomic resources and increase productive capacities. In so doing, the 

^ FA Appropriations Act, 1976 : "African development program : For necessary ex- 
penses to carry out the provisions of section 494B. $5,000,000." 

5«22 use 2151s. Sec. 121 was added by Sec. 115(3) of the International Development 
and Food Assistance Act of 1977 (91 Stat. 539). 

» FA Appropriations Act, 1978 : 

"Sahel development program : For necessary expenses to carry out the provisions of 
section 121, $50,000,000, to remain available until expended : .Provided, That no part of 
such appropriation may be available to make any contribution of the United States 
to the Sahel development program in excess of 10 per centum of the total contributions 

to S'^f^'i T^roprnm " 

«> 22 use 2161. 



20-818 O - 78 



26 

President shall take into account (1) whether financing could be 
obtained in whole or in part from other free-world sources on reason- 
able terms, including private sources within the United States, (2) 
the economic and technical soundness of the activity to be finan ed, 
including the capacity of the recipient country to repay the loan at a 
reasonable rate of interest,^^ (3) whether the activity gives reasonable 
promise of contiibuting to the development of economic resources 
or to the increase of productive capacities in furtherance of the pur- 
poses of this title, (4) the consistency of the activity with, and its 
relationship to, other development activities being undertaken or 
planned, and its contribution to realizable long-range objectives, (5) 
the extent to which the recipient country is showing a responsiveness 
to the vital economic, political, and social concerns of its people, and 
demonstrating a clear determination to take effective self-help meas- 
ures,*^2 (6) the possible effects upon the United States economy, with 
special reference to areas of substantial labor surplus, of the loan in- 
volved, (7) the degree to which the recipient country is making prog- 
ress toward respect for the rule of law, freedom of expression and of 
the press, and recognition of the importance of individual freedom, 
initiative, and private enterprise, (8) the degree to which the re- 
cipient country is taking steps to improve its climate for private 
investment, and (9) whether or not the activity to be financed will 
contribute to the achievement of self-sustaining growth.*'^ Loans shall 
be made under this title only upon a finding of reasonable prospects 
of repayment. Funds made available under this title, except funds 
made available pursuant to section 205, shall not be used to make 
loans in more than twenty countries in any fiscal years.^* 

(c) The authority of section 610 may not be used to decrease the 
funds available under this title, nor may the authority of section 
614(a) be used to waive the requirements of this title. 

(d) Funds made available for this title shall not be loaned or re- 
loaned at rates of interest excessive or unreasonable for the borrower 
and in no event shall such funds (except funds loaned under section 
205 and funds which prior to the date of enactment of the Foreign 
Assistance Act of 1968 ^^ were authorized or committed to be loaned 
upon terms which do not meet the minimum terms set forth herein) be 
loaned at a rate of interest of less than 3 per centum per annum ®® com- 
mencing not later than ten years following the date on which the funds 
are initially made available under the loan, during which ten-year 

» Sec. 102(a)(1) of the FAAct of 1963 amended clauses (1) and (2), which formerly 
read as follows : "(1) whether financing could be obtained In whole or In part from other 
free-world sources on reasonable terms, (2) the economic and technical soundness of the 
activity to be financed." 

«2Sec. 102(a) (1) of the FAAct of 1966 struck out "and" at the end of clause (5), sub- 
stituted the comma for a period at the end of clause (6), and added clauses (7), (8) and 
(9). See also Sees. 211(a). 251(b)(4) and 604(a) of this Act. 

•"Sec. 102(a)(1) of the FAAct of 1966 struck out "and" at the end of clause (5). sub- 
stituted the comma for a period at the end of clause (6). and added clauses (7), (8) and 
(9). See also Sees. 211(a). 254(b)(4) and 604(a) of this Act. 

•*The last sentence which was added bv Sec. 102(aM2) of the FAAct of 1966, was 
amended by Sec. 102(a) of the FAAct of 1967. It formerly read as follows: "Funds made 
available under this title, except funds made available pursuant to section 205, shall not 
be used to make loans in more than ten countries in any fiscal year, except that such loans 
may be mnde in any additional country after at least thirty days shall have elapsed follow- 
ine the submission by the President to the Committee on Foreign Relations of the Senate 
and the Speaker of t^e Ho'^e of T>e-re^enta^ives of a re'^ort st««ting +bat the making of 
loans in such ad'^itlonal country during such fiscal year is In the national interest and 
crivinjT hip reasons therefor." Sec. 205 was renealed in 1972. 

«Sec. 101(a) (1) of the FAAct of 1968 substituted "1968" in lieu of "1967". 

•«The words "3 --er centum" were substituted in lieu of "2i^ per centum" by Sec. 101 
(a) (2) of the FAAct of 1968. 



27 

period the rate of interest shall not be lower than 2 per centum ^^ per 
annum, nor ®^ higher than the applicable legal rate of interest of the 
country in which the loan is nuide. 

(e) ''^ In carr^dng out this title, the President shall not allocate, re- 
serve, earmark, commit, or otherwise set aside, funds aggregating in 
excess of $100,000 for use in any country under this title unless (1) an 
application for such funds has been received for use in such country 
together with sufficient infoi-mation and assurances to indicate reason- 
ably that the funds will be used in an economically and technically 
sound manner, or (2) the President determines with respect to each 
such allocation, reservation, earmarking, commitment, or set-aside that 
it is in the national interest to use such funds pursuant to multilateral 
plans. 

(f) "^ Xo assistance shall be furnished under this title for a project 
unless the President determines that such project will promote the eco- 
nomic development of the requesting country, taking into account the 
current human and material resource requirements of that country and 
the relationship between the ultimate objectives of the project and the 
overall economic development of the country, and that such project 
specifically provides for appropriate participation by private 
enterprise. 

SeCo 202.'^ Authorization. — (a) There is hereby authorized to be 
appropriated to the President for the purposes of this title $685,000,000 
for the fiscal year 1967, $450,000,000 for the fiscal year 1968,'^ $350,- 
000,000 for the fiscal year 1969,^^ $350,000,000 for the fiscal year 1970, 
$350,000,00 for the fiscal year 1971,'* $250,000,000 for the fiscal year 
1972, and $250,000,000 for the fiscal year 1973,^^ which sums shall re- 
main available until expended : Provided^ That any unappropriated 
portion of the amount authorized to be appropriated for any such 
fiscal year may be appropriated in any subseijuent fiscal year during 
the above period in addition to the amount otherwise to be appropri- 
ated for such subsequent fiscal year : Provided further^ That, in order 
to effectuate the purposes and provisions of sections 102, 201, 601, and 
602 of this Act, not less than 50 per centum of the funds appropriated 
pursuant to this subsection for each of the fiscal years ending June 30, 
1970, June 30, 1971, June 30, 1972, and June 30, 1973,^« shall be avail- 
able for loans made to encoui'age economic development through 
private enterprise. ^^ 

8" Sec. 102(b) of the FAAct of 1967 substituted "2 per centum" in lieu of "1 per centum". 

«8 Except as indinated in the preceding three footnotes, the words to this point, begin- 
ninsT immediately after "in no event" were added by Sec. 102(a) (2) of the FAAct of 1963. 

«» Subsection (e) was added by Sec. 102 of the FAAct of 1962. 

"'Subsection (f) was added by Sec. 102(a)(3) of the FAAct of 1963. 

7122 rSC § 2162. 

"Sec. 101(a)(1) of the FAAct of 1969 struck out the word "and", which appeared at 
this point. 

-The words "and if 350.000,000 for the fiscal year 1969," were added bv Sec. 101(b)(2) 
of the FAAct of 1968. 

"* The worfis "."^350 000,000 for the fiscal year 1970. and $350,000,000 for the fiscal year 
1971" were added by Sec. 101 (a) (2) of the FAAct of 1969. 

-The words "$.S50.000.000 for the fiscal year 1971. $250,000,000 for the fiscal year 
1972. and .«250.000.000 for the fiscal year 1973" were substituted in lieu of "and 
$3.=i0,000 000 for the fiscal year 1971" bv Sec. 101(a) (1) of the FAAct of 1971. 

FA Appropriation Act, 1972 ; "$200. 000.000 together with such amounts as are provided 
for under section 203. all sufh amounts to remain available until expended." 

'« Sec. 101(aW2> o' the FAAct of 1971 subst'tntei t e words "June 30, 1971, June 30, 
1972. nnd June 30. 1973" in lieu of "and June 30, 1971". 

■"Except as indicated in previous footnote, the second proviso was added by Sec. 102 
(b) (2) of the FAAct of 1963. 



28 

(b) Whenever the President determines that it is important to the 
advancement of United States interests and necessary to further the 
purposes of this title, and in recognition of the need for reasonable 
advance assurances in the interest of orderly and effective execution 
of long-term plans and programs of development assistance, he is au- 
thorized to enter into agreements committing, under the terms and 
conditions of this title, funds authorized to be appropriated under this 
title, subject only to the annual appropriation of such funds. 

(c) Upon conclusion of each such agreement involving funds to be 
appropriated, the President shall notify the Foreign Relations and 
Appropriations Committees of the Senate and the Speaker of the 
House of Representatives of the provisions of such agreement, includ- 
ing the amounts of funds involved and undertakings of the parties 
thereto.^^ 

(d) Except as otherwise provided in this part, the United States 
dollar assets of the corporate entity known as the Development Loan 
Fund which remain unobligated and not committed for loans repayable 
in foreign currencies on the date prior to the abolition of such Fund 
shall be available for use for purposes of this title. 

Sec. 203.'^ Fiscal Provisions. — Xot more than 50 per centum of 
dollar receipts scheduled to be paid during each of the fiscal year 1974 
and 1975 from loans made pursuant to this part and from loans made 
under predecessor foreign assistance legislation are authorized to be 
made available for each such fiscal year for use for purposes of making 
loans under chapter 1 of this part. Such receipts shall remain available 
until expended. 

On and after July 1, 1975, none of the dollar receipts paid during 
any fiscal year from loans made pursuant to this part or from loans 
made under predecessor foreign assistance legislation are authorized 
to be made available during any fiscal year for use for purposes of 
making loans under chapter 1 of this part. All such receipts shall be 
deposited in the Treasury as miscellaneous receipts.®^ 

Sec. 204.®^ Development Loan Committee. — The President shall 
establish an interagency Development Loan Committee, consisting of 
such officers from such agencies o.f the United States Government as he 
may determine, which shall, under the direction of the President, estab- 
lish standards and criteria for lending operations under this title in 
accordance with the foreign and financial policies of the United 
States.^2 Except in the case of officers serving in positions which they 
were appointed by the President by and with the advice and consent of 
the Senate, officers assigned to the Committee shall be so assigned by 
the President by and with the advice and consent of the Senate. 

Sec. 205.®^ (Relating to transfers to international financial institu- 
tions) [Repealed— 1972]. 

■^ For other reports required to be submitted to Congress, see Reports to Congress. Index. 

•^22 use 2163. Sec. 203 was amended by See. 3(a) of the FAAct of 1973. It formerly 
read as follows : ^ . ^ 

"Sec. 203. Fiscal Provisions. — Dollar receipts from loans made pursuant to this part 
and from loans made under the Mutual Security Act of 1954, as amended, are authorized to 
be made available for the fiscal year 1970, for the fiscal year 1971, for the fiscal year 1972, 
and for the fiscal year 1973 for use for the purposes of this title, for loans under title VI, 
and for the purposes of section 232. Such receipts and other funds made available under 
this section shall remain available until expended." 

80 Sec. 6 of the FAAct of 1974 added the last two sentences beginning with the words 
"On and after July 1, 1975, * * *". 

81 22 use 2164. 

82 See also Sec. 305 of Executive Order 10973, page 252. 

83 Section 205. which related to transfers to international financial institutions, was 
repealed by Sec. 101(d) of the FAAct of 1971. 



29 

Sec. 206.^4 Regional Deyelopment in Africa. — The President is 
requested to seek and to take appropriate action, in cooperation and 
consultation with African and other interested nations and with inter- 
national development organizations, to further and assist in the ad- 
vancement of African regional development institutions, including the 
African Development Bank, with the view toward promoting African 
economic development. 

Sec. 207.^^ Purposes of Development Assistance. — In furnishing 
development assistance under this chapter the President shall place 
appropriate emphasis on — 

(a) assuring maximum participation in the task of economic 
development by the people of less developed countries through 
the encouragement of strong economic, political, and social insti- 
tutions needed for a progressive democratic society ; 

(b) programs directea at enabling a country to meet the food 
needs of its people from its own resources, including the furnish- 
ing of technical knowledge and of resources necessary to increase 
agricultural productivity ; assistance for improved storage, trans- 
portation, marketing, and credit facilities (including provision 
for foreign currency loans to small farmers), cooperatives, water 
conservation programs, and adaptive research programs; and 
technological advice: Provided^ That relief from the immediate 
threat of famine, hunger, and malnutrition may be provided by 
the United States and other countries, and that assistance pro- 
vided under the Agricultural Trade Development and Assistance 
Act of 1954, as amended,^*^ should complement assistance furnished 
under this Act ; 

(c) assisting recipient countries in their efforts to meet increas- 
ing needs for trained manpower in their development efforts by 
improving education planning and research, training teachers and 
administrators, developing and constructing educational institu- 
tions, and using modern educational technology ; 

(d) developing programs to combat malnutrition, to control 
and eradicate disease, to clear slums, and to provide adequate and 
safe drinking water, adequate sewage disposal systems, overall 
health education, maternal and child care, and voluntary family 
planning services which shall, where feasible, be included as part 
of programs of maternal and child care, and other public health 
assistance; and 

(e) other important development activities including assistance 
for programs to assist industrial development; the growth of free 
labor unions, cooperatives, and voluntary agencies; improvement 
of transportation and communication systems; development of 
capabilities for sound economic planning and public administra- 
tion ; urban development ; and modernization of existing laws to 
facilitate economic development. 

Sec. 208.^^ Self -Help Criteria. — In determining whether and to 

what extent the United States should furnish development assistance 

to a country under this chapter the President shall take into account — 

(a) the extent to which the country is taking such measures as 

may be appropriate to its needs and oapabilities to increase food 

»*22 use § 2166, Sec. 206 was added by Sec. 102(b) of the PAAct of 1965. 
8^22 use § 2167. Sec. 207 was added by Sec. 102(e) of the FAAct of 1967. 
* For text, see page 339. 
8" 22 use § 2168. Sec. 208 was added by Sec. 101(e) of the FAAct of 1967. 



30 

production and improve the means for storage and distribution 
of food: 

(b) the extent to which the country is creating a favorable 
climate for private enterprise and investment, both domestic and 
foreign ; 

(c) the extent to which the government of the country is in- 
creasing the role of the people in the developmental process ; 

(d) the extent to which the country's governmental expendi- 
tures are allocated to key developmental areas, including agricul- 
ture, health, and education, and not diverted for unnecessary mili- 
tary purposes or to intervention in the affairs of other free and 
independent nations; 

(e) the extent to which the country is willing to make contribu- 
tions of its own to the projects and programs for which the assist- 
ance is provided ; 

(f ) the extent to which the country is making economic, social, 
and political reforms, such as tax collection improvements and 
changes in land tenure arrangements, that will enable it to achieve 
developmental objectives more efficiently and justly; and 

(g) the extent to which the country is otherwise showing a 
responsiveness to the vital economic, political, and social concerns 
of its people, and demonstrating a clear determination to take 
effective self-help measures. 

Sec. 209.'^' Multilateral and Regional Programs.— (a) The Con- 
gress recognizes that the planning and administration of development 
assistance by, or under the sponsorship of tlie United Nations, multi- 
lateral lendmg institutions, and other multilateral organizations may 
contribute to the efficiency and effectiveness of that assistance through 
participation of other donors in the development effort, improved co- 
ordination of policies and programs, pooling of knowledge, avoidance 
of duplication of facilities and manpower, and greater encouragement 
of self-help performance. 

(b)^^ It is further the sense of the Congress (1) that where problems 
or opportunities are common to two or more countries in a region, in 
such nelds as agriculture, education, transportation, communications, 
power, watershed development, disease control, and establishment of 
development banks, these countries often can more effectively resolve 
such problems and exploit such opportunities by joining together in 
regional organizations or working together on regional programs, 
(2) that assistance often can be utilized more efficiently in regional 
programs than in separate country programs, and (3) that to the 
maximum extent practicable consistent with the purposes of this Act 
assistance under this Act should be furnished so as to encourage less 
developed countries to cooperate with each other in regional develop- 
ment programs. 

88 22 use § 2169. Sec. § 209 was adderl by Sec. 102(e) of the FAAct of 1967. Sec. 101 
(c) (1) of the FAAct of 1971 amended subsection (a), which formerly read as follows: 

"(a) Multilateral Programs. — The Conj?ress recognizes that planning and administra- 
tion of development assistance by, or under the sponsorship of, multilateral lending institu- 
tions and other international organizations may, in some instances, contribute to the 
efficiency and effectiveness of that assistance through participation of other donors in the 
development effort, improved coordination of policies and programs, pooling of knowledge, 
avoidance of duplication if facilities and manpower, and greater encouragement of self-help 
performance." 

s° The words "Regional Programs. — ", which appeared at this point, were struck out 
by sec. 101 (c) (3) of the FAAct of 1971. 



31 

(c)^° It is the sense of the Congress that the President should 
increase, to the extent practicable, the funds provided by the United 
States to multilateral lending institutions and multilateral organiza- 
tions in which the United States participates for use by such institu- 
tions and organizations in making loans to foreign countries. 

(d)^i In furtherance of the provisions of subsection (a) of this sec- 
tion, any funds appropriated under this part 1 may be transferred by 
the President to the International Development Association, the Inter- 
national Bank for Reconstruction and Development, the International 
Finance Corporation, the Asian Development Bank or other Multi- 
lateral lending institutions and multilateral organizations in which 
the United States participates for the purpose of providing funds to 
enable any such institution or organization to make loans to foreign 
countries. 

Title II — Technical Cooperation and Development Grants ^^ 

Sec. 211.^^ General Authority. — (a) The President is authorized 
to furnish assistance on such terms and conditions as lie may determine 
in order to promote the economic development of less developed fiiend- 
ly countries and areas, with emphasis upon assisting the development 
of human resources thi-ough such means as programs of teclinical 
cooperation and development. In so doing, the President shall take 
hi to account (1) whether the activity gives reasonable promise of con- 
tributing to the development of educational or other institutions and 
programs directed toward social i^rogiess, (2) the consistency of the 
activity with, and its relationship to, other development activities 
being undertaken, or planned, and its contribution to realizable long- 
range development objectives, (3) the economic and technical sound- 
ness of the activity to be financed, (4) the extent to which the recipient 
country is showing a responsiveness to the vital economic, political, 
and social concerns of its people, and demonstrating a clear determi- 
nation to take effective self-help measures and a willingness to pay 
a fair share of the cost of programs under this title, (5) the possible 
adverse effects upon the United States economy, with special reference 
to areas of substantial labor surplus, of the assistance involved,^* (6) 
the desirability of safeguarding the international balance of pay- 
ments position of the United States, (7) the degree to which the re- 
cipient country is making progress toward lespect for the rule of law, 
freedom of expression and of the press, and recognition of the im- 
portance of individual freedom, initiative, and piivate enterprise, and 
(8) whether or not the activity to be financed will contribute to the 
achievement of self-sustaining growth. If the President finds that 

^Sibseotion (c). which was added by Sec. 101(c)(2) of the F\Act of 1971. was 
amended by Sec. 311 of Public Law 94-161 (89 Stat. 849). It formerly read as follows: 
"Notwithstanding any othpr provision of law, the President should reduce the amounts and 
numbers of loans made by the United States directly to individual foreign countries with 
the objective of reducing the total amount of bilateral loans made under this Act so that, 
by not later than June 30. 1975, such total amount shall not exceed $100,000,000." 

81 Subsections (c) and (d) were adr^ed bv Sec. 101(c)(2) of the FAAct of 1971. Sec. 107 
of the FA Appropriation Act, 1977. prohibits the use of funds contained in title I of that 
Act to carry out the provisions of sections 209(d) and 251(h) of this Act. 

»2 Sec. 102(a^ of t e FAAct of '964 amended t'^e t^'t'e heaiine. whic^ forrrierly read: 
"TITLE II— DEVELOPMENT GRANTS AND TECHNICAL COOPERATION". 

83 22 use § 2171. 

»*Sec. 103(fi)(l) of the FAArt of 19«6 struck oM "and" at the end of clause (5). sub- 
stituted the comma for a period at the end of clause (6), and added clauses (7) and (8). 



32 

assistance proposed to be funiislied under tliis title would have a sub- 
stantially adverse effect upon the United States economy, or a sub- 
stantial segment thereof, tlie assistance shall not be furnished.^^ The 
authority of this title shall not be used to furnish assistance directly »« 
to more than foity countries in any liscal year, except tliat up to 
$60(),0()() may be used for self-help projects in additional countries dur- 
ing such fiscal year.®^ 

(b) In countries and areas which arc in the eailier stages of eco- 
nomic developuient, programs of development of education and human 
resources through such means as technical cooperation shall be empha- 
sized, and the furnishing of capital facilities for purposes other than 
the development of education and human resources sliall be given a 
lower priority until the requisite knowledge and skills have been 
developed. 

(c)»« Not to exceed $1,000,000 of the funds made available for the 
purposes of this section in any liscal year may be used for [>rugrams 
designed to promote the peaceful uses of atomic energy outside the 
United States and such programs may be carried out only in accord- 
ance with thii requirements of this section. 

(d)«» Not to exceed $1(),0()0,0(X) of funds made available in any fiscal 
year ^o" under section 212, or under section 252 (other than loan funds) , 
may be used foi- assistance, on such terms and conditions as the Presi- 
dent may specify, to research and educational instituticms in the 
United States foi- the purpose of strengthening their capacity to de- 
velop and carry out programs concerned with the economic and social 
development of less developed countries. 

(e)^^ In any developing countries or areas where food production is 
not increasing enough to meet the demands of an expanding popula- 
tion, or diets are seriously deficient, a high priority shall be given to 
efforts to increase agricultural production, particuFarly the establish- 
ment or expansion of adaptive research programs designed to increase 
acre-yields of the major food crops. Such research programs, to the 
greatest extent possible, should be based on cooperative undertakings 
between universities and research institutions in the developing coun- 
tries and United States universities and research institutions. 

Sec. 212."i Authorization. — To carry out the purposes of section 
211, there is authorized to be appropriated to the President $175,000,- 
000 for the fiscal year 1972, and $175,000,000 for the fiscal year 1973 
w^hicli amounts are authorized to remain available until expended. 



102 

5 



85 See also Sees. 201(b)(6), 237(k) and 604(a) of this Act. 

»8 Sec. 4(1) of the FA Act of 1973 inserted the word "directlv". 

»7The la?t sentence was added hv Sec. 103(a)(2) of the FAAct of 1966. Sec. 103(a) of 
the FAAct of 1967 amended the last sentence by substituting the words beginning with 
"except that up to" in lieu of "except that such assistance may be furnished to any addi- 
tional country after at least thirty days shall have elapsed following the submission by 
the President to the Committee on Foreign Relations of the Senate and the Speaker of 
the House of Representatives of a report stating that the furnishing of assistance to such 
additional country during such fiscal year is in the national interest and giving his reasons 
therefor." 

88 Subsection (c) was added by Sec. 103(a) of the FAAct of 1962. 

»" Subsections (d) and (e) were added by Sec. 103(a)(3) of the FAAct of 1966. 

!•» The words "in any fiscal vear" were added bv Sec. 102(a) of the FAAct of 1968. 

10122 use § 2172. Sec. 103(b) of the FAAct of 1967 amended Sec. 212. w'lch formerly 
read as follows : "There is hereby authorized to be appropriated to the President for use 
beginning in the fiscal year 1967 to carry out the purposes of section 211 not to exceed 
$210,000,000. which shall remain available until expended." 

102 Se^. 102fa> of the FAAct of 1971 sibsMt'ifed the word<? "«17.'i.000 000 for the fiscal 
year 1972. and $175,000,000 for the fiscal year 197.3" in lieu of "$183,500,000 for the fiscal 
year 1970. and $183,500,000 for the fiscal vear 1971". 

FA Appropriations Act. 1972 : "$160,000,000 : Provided, That no part of this appropria- 
tion shall be used to initiate any project or activity which has not been justified to the 
Congress." 



33 

Sec. 213.1"^ Atoms for Peace. * * * [Repealed— 1962] 

Sec. 214."^ American Schools and Hospitals Abroad. — (a) The 

President is authorized to furnish ^^^ assistance, on such terms and 
conditions as he may specify, to schools and libraries outside the 
United States founded or sponsored by United States citizens and 
serving as study and demonstration centers for ideas and practices of 
the United States. 

(b) The President is authorized,^^^ notwithstanding the provisions 
of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 
et seq.)^"^ to furnish ^°** assistance, on such terms and conditions as he 
may specify, to institutions referred to in subsection (a) of this sec- 
tion, and to hospital centers for medical education and research out- 
side the United States, founded or sponsored by United States 
citizens.^*^^ 

(c) "° To carry out the purposes of this section, there are authorized 
to be appropriated to the President for 1977, $25,000,000, and for the 
fiscal year 1978, $25,000,000,^" which amounts are authorized to re- 
main available until expended. 

^(j^iio xhere are authorized to be appropriated to the President 
to carry out the purposes of this section, in addition to funds other- 
wise available for such purposes, for each of the fiscal years 
1977 and 1978, $7,000,000,^2 in foreign currencies which the Secretary 
of the Treasury determines to be excess to the normal requirements of 
the United States. 

(e)ii« Not later than June 30, 1974, the Secretary of State shall sub- 
mit to the Congress such recommendations (including recommeiida- 

10^ Sec. 103(c) of the FAAct of 1962 struck out. former Sec. 213. which related to atoms 
for peace. 

1^22 use § 2174. 

105 Sec. 103(b)(1) of the FAAct of 1963 substituted the word "furnish" for the words 
"use, in addition to other funds available for such purposes, funds made available for the 
purposes of Section 211 for". 

103(b) (2) of the FAAct of 1963 struck out the words "to use" which appeared at 
this point. 

1. w^ text, see page 231. 

108 Sec. 103(b) (2) of the FAAct of 1963 substituted the words "to furnish" for the words 
"foreign currencies accruing to the United States Government under any Act, for purposes 
of subsection (2) of this section, and for". 

!«» Sec. 103(c)(1) of the FAAct of 1966 substituted the words to this point, beginning 
with "to institutions referred to" in lieu of "to hospitals outside the United States founded 
or sponsored by United States citizens and serving as centers for medical education and 
research". 

-"bee. 4(2) of the FAAct of 1973 substituted subsections (c), (d) and (e) in lieu of 
subsections (c) and (d), which formerly read : 

"(c) There is hereby authorized to be appropriated to the President for the purposes 
of this section, for the fiscal year 1972, $30,000,000 and for the fiscal year 1973, 
iF30,000,000 which amounts are authorized to remain available until expended. Amounts 
appropriated under this subsection for the fiscal year 1970 shall be available for expendi- 
tures solely in accordance with the allocations set forth on pages 25 and 26 of House 
Repirt No. 91-611 and on page 23 of Senate Report No. 91-603. 

"(d) There is authorized to be appropriated to the President for the purposes of section 
214(b), in addition to funds otherwise available for such purposes, for the fiscal year 1970, 
$3,000,000 in foreign currencies which the Secretary of the Treasury determines to be excess 
to the normal requirements of the United States. Foreign currencies appropriated under 
this subsection shall be available for expenditure solely in accordance with the allocation 
set forth on page 23 of Senate Report No. 91-603." 

111 The authorization for fi.^cal year 1978 was added by Sec. 116(a)(1) of the Interna- 
tional Development and Food Assistance Act of 1977 (91 Stat. 539). Authorizations 
under Sec. 214 for recent years included the following : FY 1974— $19,000,000 ; FY 1975 — 
$19,000,000 : FY 1976— $25,000,000. 

FA Appropriations Act. 1978: "For necepsarv expenses to carrv out the provisions of 
section 214. $23,750,000 " 

112 The reference to 1978 was added by Sec. 116(a) (2) of the International Development 
and Food Assistance Act of 1977 (91 Stat. 539). Sec. 116(a)(2) also struck out the words 
"1974 and 197.') $6,500,000 and for each of the fiscal years 1976 and". 

FA Appropriations Act. 1977 : "For necessary expenses to carry out the provisions of 
section 214, $7,000,000 in foreign currencies which the Treasury Department determines 
to be excess to the normal requirements of the United States, to remain available until 
expended." 



34 

tions concerning which agency of the United States Government 
should administer such assistance) as he considei-s desirable for assist- 
ance to schools, libraries, and hospital centers for medical education 
and research, outside the United States, founded or sponsored by 
United States citizens and serving as study and demonstration centers 
for ideas and practices of the United States. 

(f)"^ Notwithstanding the provisions of subsection (b), funds ap- 
propriated under this section may be used for assistance to centers for 
pediatric plastic and reconstructive surgery established by Children's 
Medical Relief International, except that assistance may not be fur- 
nished for the domestic operations of any such center located in the 
United States, its territories or possessions. 

Sec. 215.^^* Loans to Small Farmers. — It is the policy of the 
United States and the purpose of this section to strengthen the econo- 
mies of less developed friendly countries, and in friendly countries 
where the economy is essentially rural or based on small villages, to 
provide assistance designed to improve agricultural methods and tech- 
niques, to stinudate and encourage the development of local programs 
of self-help and mutual cooperation, particularly through loans of 
foreign currencies for associations of operators of small farms, formed 
for the purpose of joint action designed to increase or diversify agri- 
cultural productivity. The maximum unpaid balance of loans made to 
any association under this section may not exceed $25,000 at any one 
time; and the aggregate unpaid balance of all loans made under this 
section may not exceed $10,000,000 at any one time. 

Sec. 216."^ Voluntary Agencies. — (a) In order to further the effi- 
cient use of United States voluntary contributions for relief and 
rehabilitation of friendly peoples, the President is authorized to use 
funds made available for the purposes of section 211 to pay transpor- 
tation charges from United States ports or, in the case of excess or 
surplus property supplied by the United States, from foreign ports ^-*^ 
to ports of entry abroad, or, in the case of landlocked countries, to 
points of entry in such countries, on shipments by the American Red 
Cross and United States voluntary nonprofit relief agencies registered 
with and approved by the Advisory Committee on Voluntary F'oreign 
Aid. 

(b) AVhere practicable the President shall make arrangements with 
the receiving country for free entry of such shipments and for the 
making available by the country of local currencies for the purpose of 
defraying the transportation cost of such shipments from the port of 
entry of the receiving country to the designated shipping point of the 
consignee. 

Sec. 217."^ Used Equipment. — The President is authorized to use 
funds made available for the purposes of section 211 to conduct a study 
and investigation to determine the feasibility of establishing programs 
for the furnishing to less developed friendly countries and areas of 
used tools, machinery, and other equipment to be donated by private 

1^ Subsection (f) was added by Sec. 116(a) ('3) of the International Development and 
Food Assistance Act of 1077 (91 Stat. 53'>). However, such new subsection shall not apply 
to funds appropriated prior to August 3, 1977, 

i"22 use 2175. 

"^22 use 2176. 

"« The words to this point, beginning "or, in the case of" were added by Sec. 102(d) 
of the FAAct of 1964. 

117 22 use § 2177. This section was added by Sec. 102(e) of the FAAct of 1964. 



35 

enterprises, or acquired through normal channels of trade, and the 
extent to which such programs are likely to be utilized by and con- 
tribute to the economic development of the receiving country. The 
President shall submit to tho Congress at tlie earliest practicable date 
a report of the result of such study and investigation, together with 
such recommendations for legislation as he deems advisable. 

Sec. 218.^i« Fish and Other Protein Concentrates.— (a) The 
President is authorized to conduct a program designed to demonstrate 
the potential and to encourage the use of fish and other protein concen- 
trates as a piactical means of reducing nutritional deficiencies in less 
developed countries and areas. This program shall inchide — 

( 1 ) studies and activities relating to food technology ; 

(2) development of suitable marketing techniques; 

(3) development of consumer acceptance programs; and 

(4) feeding progi'ams designed to demonstrate the nutritional 
value of fish and other protein concentrates as a diet supplement. 

In carrying out his functions under this section, the President shall 
consult with the National Council on Marine Resources and Engineer- 
ing Development, appropriate Government agencies and other such 
technical groups or a^rencies as may be helpful with such activities. In 
accordance with section 601(b) of this Act, the President shall en- 
courage full participation in such program by United States private 
enterprise. 

The President is authorized to use funds made available under 
this part for the purposes of this section, and is urged to use at least 
$2,500,000 of such funds for such purposes. 

Sec. 219.^^^ Prototype Desalting Plant. — (a) In furtherance of the 
purposes of this part and for the purpose of improving existing, and 
developing and advancing new technology and experience m the 
design, construction, and operation of large-scale desalting plants of 
advanced concepts which will contribute nuiterially to low-cost de- 
salination in all countries, inclu(lin<jj the United States, the President, 
if he determines it to be feasible, is authorized to participate in the 
development of a large-scale water treatment and desalting prototype 
plant and necessary appurtenances to be constructed in Israel as an 
integral part of a dual-purpose power generating and desalting 
project. Such participation shall include financial, technical, and such 
other assistance as the President deems appropriate to provide for the 
study, design, construction, and, for a limited demonstration period 
of not to exceed five years, operation and maintenance of the water 
treatment and desalting facilities of the dual-purpose project. 

(b) Any agreement entered into under subsection (a) of this section 
shall include such terms and conditions as the President deems appro- 
priate to insure, among other things, that all information, products, 
uses, processes, patents, and other developments obtained or utilized 
in the development of this prototype plant will be available without 
further cost to the United States for the use and benefit of the United 
States throughout the world, and to insure that the United States, its 
officers and employees have a permanent right to review data and have 
access to such plant for the purpose of observing its operations and 
improving science and technology in the field of desalination. 

ii« 22 use § 2178. Sec. "218 was adf^ed bv Sec. 103(d) of the FA Act of 1967. 
ii» 22 use § 2179. Sec. 219 was added by Sec. 104 of the FAAct of 1969. 



36 

(c) In carrying onl the provisions of tliis section, the President may 
enter into contracts with j)nblic or private agencies and with any per- 
son witliout regard (o sections 3648 and 3709 of the Ilevised Statutes of 
the United States (31 U.S.C. 520 and 41 U.S.C. 5). 

(d) Nothing in this section shall be construed as intending to deprive 
the owner of any background patent or any right which such owner 
nmy have under that patent. 

(e) In carrying out the provisions of this section, the President may 
utilize the personnel, services, and facilities of an}; Federal agency. 

( f ) The United States costs, other than its administrative costs, for 
the study, design, construction, and operation of a prototype plant 
under this section shall not exc-eed either oO per centum of the total 
capital costs of the facilities asscK'iated with the production of water, 
and 50 per centum of the operation and maintenance costs for the 
demonstration period, or $20,000,000, whichever is less. There are au- 
thorized to be appropriated, subject to the limitations of this sub- 
section, such sums as may be necessary to carry out the provisions of 
this section, including administrative costs thereof. Such sums are au- 
thorized to remain available until oxpended.^^" 

(g) No funds aj)propriated for the Office of Saline Water pursuant 
to tne appropriation authorized by the Act of July 11, 1969 (83 Stat. 
45, Public Law 91-43), or prior authorization Acts, shall be used to 
carry out the purposes of this section. 

Sec. 220.^21 Programs for Peaceful Communication. — The Presi- 
dent is authorized to use funds made available under section 212 to 
carry out programs and peaceful communications which make use of 
television and related technologies, including satellite transmissions, 
for educational, health, agricultural, and community development 
purposes in the less developed countries. 

(b) In carrying out programs in the fields of education, health, 
agriculture, and community development, the agency primarily re- 
sponsible for part 1 shall, to the extent possible, assist the developing 
countries with research, training, planning assistance, and project sup- 
port in the use of television and related tecnnologies, includm^ satellite 
transmissions. The agency shall make maximum use of existmg satel- 
lite capabilities, including the facilities of the International Tele- 
communications Satellite Consortium. 

(c) In implementing activities under this section, the agency pri- 
marily responsible for part I shall coordinate closely with Federal, 
State, and local agencies and with nongovernmental educational, 
health, and agricultural institutions and associations within the 
United States. 

Sec. 220A.122 gu^^ Canal.— The President is authorized to furnish 
financial assistance, on such terms and conditions as he may determine, 
for assisting in the reopening of the Suez Canal after agreement has 
been reached by the parties involved, which agreement provides for 
the use of the C.anal by the ships of all nations, including Israel, on a 
nondiscriminatory basis. For the purpose of carrying out this sec- 
tion, there are authorized to be appropriated not to exceed $10,000,000 
in Egyptian pounds now owned by the United States and determined 
by the President to be excess to the normal requirements of depart- 

120 FA Appropriation Act. 1970 : $20,000,000. 

121 2? T-sc § ?1P0. Fee. 220 was &<^(^e<^ bv Sec. 105 of the FAAct of 1969. 

122 22 US'C § 2180a. Sec. 220 was added by Sec. 102(c) if the FAAct of 1971. 



37 

ments and agencies of the United States. Amounts appropriated under 
this section are authorized to remain available until expended. 

Title III — Housing and Other Credit Guaranty Programs ^^^ 

Sec. 221.^2* Worldwide Housing Guarantees. — In order to facili- 
tate and increase the participation of private enterprise in furthering 
the development of the economic resources and productive capacities of 
less developed friendly couiilnes and areas, and promote the develop- 
ment of thrift and credit institutions engaged in programs of mo- 
bilizing local savings for financing the construction of self -liquidating 
housing projects and related community facilities, the President is 
authorized to issue guaranties, on such terms and conditions as he 
shall determine, to eligible investors as defined in section 238(c), 
assuring against loss of loan investments for self -liquidating housing 
projects.^2^ Such guaranties shall be issued under the conditions set 
forth in section 222 (b) , section 222 (c) ,^^6 and section 223. 

Sec. 222.^27 Housing Projects in Latin American Countries. — 
(a) The President shall assist m the development in the American 
Republics of self-liquidating housing projects, the development of 
institutions engaged iii Alliance for Progress xerograms, including co- 
operatives, free labor unions, savings and loan type institutions, and 
other private enterprise programs in Latin America engaged directly 
or indirectly in the financing of home mortgages, the construction of 
homes for lower income persons and families, the increased mobiliza- 
tion of savings and improvement of housing conditions in Latin 
America. 

(b) To carry out the purposes of subsection (a), the President is 
authorized to issue guaranties, on such terms and conditions as he 
shall determine, to eligible investors, as defined in section 238(c), 
assuring against loss of loan investment made by such investors in — 

(1) private housing projects in Latin America of types similar 
to those insured by the Department of Housing and Urban Devel- 
opment and suitable for conditions in Latin America; 

(2) credit institutions in Latin America engaged directly or 
indirectly in the financing of home mortgages, such as savings and 
loan institutions and other qualified investment enterprises; 

(3) housing projects in Latin America for lower income fami- 
lies and persons, which projects shall be constructed in accordance 
with maximum unit costs established by the President for fami- 
lies and persons whose incomes meet the limitations prescribed by 
the President ; 

(4) housing projects in Latin America which will promote the 
development of institutions important to the success of the 
Alliance for Progress, such as free labor unions, cooperatives, and 
other private programs ; or 

_^ Title III was added by Sec. 105 of the FAAct of 1969. Sec. 8(a) (1) of the FAAct of 
1974 substituted the title heading "Housing and Other Credit Guaranty Programs" in lieu 
of 'Housing Guaranties". 

«4 22 use 2181. Sec. 221 was added by Sec. 105 of the FAAct of 1969; 
^ Sec. 117(a) (1) (A) of the International Development and Food Assistance Act of 1977 
} 91 Stat. 540) struck out the following sentence that previously appeared at this point: 
The total face amount of guaranties issued thereunder, outstanding at any one time, shall 
not exceed 8430,000,000." 

i^«The reference to section 222(c) was added by Sec. 117(a) (1) (B) of the International 
Deveionment and Food Assistance Act of 1977 (91 Stat. 540). 

m 22 use 2182. Sec. 222 was added by Sec. 105 of the FAAct of 1969. 



38 

(5) honsintr projects in Latin America, 25 per centum or more 
of the a^gretjato of tlie mortgage financing for which is made 
available from sources within Latin America and is not derived 
from sources outside Latin America which projects shall, to the 
maximum extent practicable, have a unit cost of not more than 
$8,500. 
(c) The total face amount of guaranties issued hereunder or hereto- 
fore under Latin American housing guaranty authority repealed by 
the Foreign Assistance Act of 1969 or under section 221 ^^®, outstand- 
ing at any one time, shall not exceed $1,030,000,000 ^^^ : Provided, That 
$325,000,000 of such guaranties may be used only for the purposes of 
subsection (b) (1). 

Sec. 222A.^29 Agricultural and Productive Credit and Self-Help 
Community Development Programs. — (a) It is the sense of the 
Congress that in order to stimulate the participation of the private 
sector in the economic development of less-developed countries in 
Latin America, the authority conferred by this section should be 
used to establish pilot programs in not more than five Latin American 
countries to encourage private banks, credit institutions, similar pri- 
vate lending organizations, cooperatives, and private nonprofit devel- 
opment organizations to make loans on reasonable terms to organized 
groups and individuals residing in a community for the purpose of 
enabling such groups and individuals to carry out agricultural credit 
and self-help community development projects for which they are 
unable to obtain financial assistance on reasonable terms. Agricultural 
credit and assistance for self-help community development projects 
should include, but not be limited to, material and such projects as 
wells, pumps, farm machinery, improved seed, fertilizer, pesticides, 
vocational training, food industry development, nutrition projects, im- 
proved breeding stock for farm animals, santitation facilities, and 
looms and other handicraft aids. 

(b) To carry out the purposes of subsection (a), the agency pri- 
marily responsible for administering part I is authorized to issue 
guaranties, on such terms and conditions as it shall determine, to pri- 
vate lending institutions, cooperatives, and private nonprofit develop- 
ment organizations in not more than five T^tin American countries 
assuring against loss of not to exceed 50 per centum of the portfolio 
of such loans made by any lender to organized groups or individuals 
residing in a community to enable such groups or individuals to carry 
out agricultural credit and self-help community development proj- 
ects for which they are unable to obtain financial assistance on reason- 
able terms. Tn no event shall the liability of the United States exceed 
75 ytev centum of any one loan. 

(c) The total face amount of guaranties issued under this section 
outstanding at any one time shall not exceed $15,000,000. Not more 
than 10 per centum of such sum shall be provided for any one insti- 
tution, cooperative, or organization. 

(d) The Inter- American Foundation shall be consulted in develop- 
ing criteria for making loans eligible for guaranty coverage in Latin 
America under this section. 



"8 c'e''. 117fa)^2> of the International Develo'^ment and Food Asslotanee Act of 1977 
(91 S^at. 540^ added the reference to section 221 and inserted "$1,030,000,000" in lieu 
of "«^00 000 000". 

«»22 use 2182a. Sec. 222A was added by Sec. 8(a)(2) of the FAAct of 1974. 



39 

(e) Not to exceed $3,000,000 of the guaranty reserve established 
under section 223(b) sliall be available to make such payments as may 
be necessary to discharge liabilities under guai'anties issued under this 
section or any guaranties previously issued under section 240 of this 
Act. 

(f) Funds held by the Overseas Private Investment Corporation 
pursuant to section 236 may be available for meeting necessary admin- 
istrative and operatintr expenses for carrymg out the provisions of this 
section through June 30, 1976. 

(g) The Overseas Private Investment Corporation shall, upon en- 
actment of this subsection, transfer to the agency primarily responsible 
for administering part I all obligations, assets, and related rights and 
responsibilities arising out of, or related to the predecessor program 
provided for in section 240 of this Act. 

(h) The authority of this section shall continue until September 30, 

(i) Notwithstanding the limitations in subsection (c) of this section, 
foreign currencies owned by the United States and determined by the 
Secretary of the Treasury to be excess to the needs of the United 
States may be utilized to carry out the purposes of this section, includ- 
ing the discharge of liabilities under this subsection. The authority 
conferred by this subsection shall be in addition to authority conferred 
by any other provision of law to implement guaranty programs uti- 
lizing excess local currency. 

(j) The President shall, on or before January 15, 1976, make a de- 
tailed report to the Congress on the results of the program established 
imder this section, together with such recommendations as he may 
deem appropriate. 

Sec. 223.^^1 General Provisions. — (a) A fee shall be charged for 
each guaranty issued under section 221, 222, or 222A ^^^ in an amount 
to be determined by the President. In the event the fee to be charged 
for such type guaranty is reduced, fees to be paid imder existing con- 
tracts for the same type of guaranty may be similarly reduced. 

(b) The amount of $50,000,000 of fees accumulated under prior in- 
vestment guaranty provisions repealed by the Foreign Assistance Act 
of 1969, together with all fees collected in connection with guaranties 
issued imder section 221 or 222 or under prior housing guaranty au- 
thorities,^^^ shall be available for meeting necessary administrative and 
operating expenses of carrying out the provisions of section 221 and 
section 222 ^^^ and of prior housing guaranty provisions repealed by 
the Foreign Assistance Act of 1969 (including, but not limited to 
expenses pertaining to personnel, supplies, and printing), subject to 
such limitations as may be imposed in annual appropriation Acts; 
for meeting management and custodial costs incurred with re- 
spect to currencies or other assets acquired under guaranties made 
pui-suant to section 221 or section 222 or heretofore pursuant to prior 
Latin American and other housing guaranty authorities repealed by 

/Kw7x^^i.*^^^*^ September 30. 1978 was inserted In lieu of December 31. 1977 by Sec. 117 
^^V Vo ?Ll^^ International Development and Food Assistance Act of 1977 (91 Stat. 540). 

Z l^ ^ ^9 2183. Sec. 223 was added by Sec. 105 of the FAAct of 1969. 

1^ Sec. 8(a)(3) of the FAAct of 1974 substituted "section 221, 222, or 222A" in lieu of 
"section 221 or section 222". 
iQ-^^?^'i 117(b)(2)(A) of the International Development and Food Assistance Act of 

A ^V^ fii^t. o40) struck out the word "hereunder" and inserted the words "under 
section 221 or 222 or under prior housing guaranty authorities". 

1. rf.v?^- ?(^!^^^ o^ t^^ FAAct of 1974 substituted "section 221 and section 222" in lieu 
of "this title". 



40 

the Foreign Assistance Act of 1969 ; and to pay the cost of investigat- 
ing and adjusting (including costs of arbitration) claims under such 
guaranties; and shall be available for expenditure in discharge of 
liabilities under such guaranties until such time as all such property 
has been disposed of and all such liabilities have been discharged or 
have expired, or until all such fees have been expended in accordance 
with the proviRions of tliis subsection. Fees collected in connection 
with guaranties issued under section 222 A shall likewise be available 
to meet similar expenses, costs, or liabilities incurred in connection 
with the programs authorized by that section.^-'"' 

(c) Any payments made to discharge liabilities under guaranties 
issued under section 221 or section 222 or heretofore under prior Latin 
American or other housing guaranty authorities repealed by the For- 
eign Assistance Act of 1069, shall be paid first out of fees referred to in 
subsection (b) (excluding amounts required for purposes other than 
the discharge of liabilities under guaranties) as long as such fees are 
available, and thereafter shall be paid out of funds, if any, realized 
from the sale of currencies or other assets acquired in connection with 
any payment made to discharge liabilities under such guaranties as 
long as funds are available, and finally out of funds hereafter made 
available pursuant to subsection (e) . 

(d) All guaranties issued under section 221, 222, 222A, or previously 
under section lilOofthis Act ' '•"' or iKM'ctoforc under ])ior Latin Amci'i- 
can or other housing guaranty authority repealed by the Foreign As- 
sistance Act of 1969 shall constitute obligations, in accordance with the 
terms of such guaranties, of the United States of America and the 
full faith and credit of the United States of America is hereby pledged 
for the full payment and performance of such obligations. 

(e) There is hereby authorized to be appropriated to the President 
such amounts, to remain available until expended, as may be necessary 
from time to time to carry out the purposes of this title. 

(f ) In the case of any loan investment guaranteed under section 221 
or section 222, the agency primarily responsible for administering 
part I shall prescribe the maximum rate of interest allowable to the 
eligible investor, which maximum rate shall not be less than one-half 
of 1 per centum above the then current rate of interest applicable to 
housing mortages insured by the Department of Housing and Urban 
Development. In no event shall the agency prescribe a maximum al- 
lowable rate of interest which exceeds by more than 1 per centum the 
then current rate of interest applicable to housing mortages insured 
by such Department. The maximum allowable rate of interest under 
this subsection shall be prescribed by the agency as of the date the 
project covered by the investment is officially authorized and, prior to 
the execution of the contract, the agency may amend such rate at its 
discretion, consistent with the provisions of subsection (f). 

(g) Housing guaranties committed, authorized, or outstanding 
under prior housin<r guaranty authorities repealed by the Foreign As- 
sistance Act of 1969 shall continue subject to provisions of law origi- 
nally applicable thereto and fees collected hereafter with respect to 

135 This sentence was added by Sec. 117(b)(2) of the International Development and 
Food Assistance Act of 1977 (91 Stat. 540). 

138 Sec. 8(a) (5) of the FAAct of 1974 substitute<l "section 221. 222. 222A. or previously 
under section 240 of this Act" in lieu of "section 221 or section 222". 



41 

such guaranties shall be available for the purposes specified in subsec- 
tion (b). 

(h) No payment may be made under any guaranty issued pursuant 
to this title for any loss arising out of fraud or misrepresentation for 
which the party seeking payment is responsible. 

(i) The authority of section 221 and section 222 shall continue until 
September 30, 1979.1^' 

(j) ^^^ Guaranties shall be issued under sections 221 and 222 only for 
housing projects which (1) except for regional projects are in coun- 
tries which are receiving, or which in the previous two fiscal years 
have received, development assistance under chapter 1 of part I of 
this Act, (2) are coordinated with and complementary to such assist- 
ance, and (3) are specifically designed to demonstrate the feasibility 
and suitability of particular kinds of housing or of financial or other 
institutional arrangements. Of the aggregate face value of housing 
guaranties hereafter issued under tliis title, not less than 90 per 
centum shall be issued for housing suitable for families with income 
below the median income (beloAv the median urban income for housing 
in urban areas) in the country in which the housing is located. The 
face value of guaranties issued with respect to housing in any country 
shall not exceed $25,000,000 in any fiscal year, and the average face 
value of guaranties issued in any fiscal year shall not exceed $15,000,- 
000. Notwithstanding the provisions of the first sentence of this 
subsection, the President is authorized to issue housing guaran- 
ties until September 30, 1978, as follows: In Israel, not exceed- 
ing a face amount of $75,000,000, in Portugal, not exceeding a face 
amount of $30,000,00, and in Lebanon, not exceeding a face amount 
of $30,000,000."^ 

Title IV — Overseas Private Investment Corporation"" 

Sec. 231.^^^ Creation, Purpose, and Policy. — To mobilize and 
facilitate the participation of United States private capital and skills 
in the economic and social development ^*^ of less developed friendly 
countries and areas, thereby complementing the development assist- 
ance objectives of the United States, there is hereby created the 
Overseas Private Investment Corporation (hereinafter called the 
"Corporation"), which shall be an agency of the United States under 
the policy guidance of the Secretary of State. 

In carrying out its purpose, the Corporation, utilizing broad cri- 
teria, shall undertake — 

(a) "^ to conduct financing, insurance, and reinsurance opera- 
tions on a self-sustaining basis, taking into account in its financing 
operations the economic and financial soundness of projects ; 

i="This date was extended from September 30. 1978 to September 30. 1979 bv Sec. 117 
(a)(3) of the International Development and Food Assistance Act of 1977 (91 Stat. 540). 

138 Sec. 311 (5) (B) of Tiiblic Law 94-161 (89 Stat. 849) added subsection (j). 

139 Sec. 117(c) of the International Development and Food Assistance Act of 1977 (91 
Stat. 540) extended the date from Sentember 30. 1977 to September 30. 1978 and inserted 
$75,000,000. $30,000,000. and $30,000,000 in lieu $50,000,000. $20,000,000. and $20,000,000. 
respectively. The reference to Lebanon was added by Sec. 414 of the International Se- 
curity Assistance and Arms Export Control Act of 1970. 

"« Title IV was added bv sec. 105 of the FAAct of 19G9. 

1" 22 use 2191. Sec. 231 was added by Sec. 105 of the FAAct of 1909. 

"2 Sec. 2(1) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390, approved Aug. 27, 1974) subrstituted "development" in lieu of 
"propress". 

1" Subsection (a) was amended bv Sec. 2(1) (R) of the Overseas Private Investment 
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: 
"(a) to conduct financial soundness of projects and the availability of financing from other 
sources on appropriate terms ;". 

20-818 O - 78 - 4 



42 

(b) to utilize private credit and investment institutions and 
the Corporation's guaranty authority as the principal means of 
mobilizing capital investment funds ; 

(c) to broaden private participation and revolve its funds 
through selling its direct investments to private investors when- 
ever it can appropriately do so on satisfactory terms ; 

(d) to conduct its insurance operations with due regard to 
principles of risk management including ^^ ' ofi'orts to share its in- 
surance risks and reinsurance ^^•''' risks ; 

(c)^^'"' to give preferential considorntion in its imestment insur- 
ance, financing, and reinsurance activities (to the maximum ex- 
tent practicable consistent with the Corporation's purposes) to 
investment projects involving businesses of not more than 
$2,500,000 net worth or with not more than $7,500,000 in total 
assets; 

(f ) to encourage and support only those private investments in 
less developed friendly countries and areas which are sensitive 
and responsive to the special needs and requirements of their econ- 
omies, and which contribute to the social and economic develop- 
ment of their people ; 

(g) to consider in the conduct of its operations the extent to 
which less developed country governments are receptive to private 
enterprise, domestic and foreign, and their willingness and ability 
to maintain conditions which enable private enterprise to make its 
full contribution to the development process ; 

(h) to foster private initiative and competition and discourage 
monopolistic practices; 

(i) to further to the greatest degree possible, in a manner con- 
sistent with its goals, the balance-of-payments and employ- 
ment ^^' objectives of the United States; 

(j) to conduct its activities in consonance with the activities of 
the agency primarily responsible for administering part I and the 
international trade, investment, and financial policies of the 
United States Government ; 

(k) to advise and assist, within its field of competence, inter- 
ested agencies of the United States and other organizations, both 
public and private, national and international, with respect to 
projects and programs relating to the development of private en- 
terprise in less developed countries and areas ; 

(1)^^^ to the maximum extent practicable, to give preferential 
consideration in the Corporation's investment insurance, financ- 



"* Sec. 2(1) (C) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) struck the words, "when appropriate," which appeared at 
this point. 

1*^ Sec. 2(1) (C) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the words "and reinsurance". 

"« Subsection (e) was amended bv Sec. 2(1) (D) of the Overseas Private Investment 
Corporation Amendments Act of 1074 (Public Law 93-390). It former!}' read as follows: 
'*(e) to utilize, to the maximum practicable extent consistent with the accomplishment 
of its purpose. The resources and skills of small business and to provide facilities to 
encourage its full participation in the programs of the Corporation ;". 

1*' Sec. 2(1) (E) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the words "and employment". 

1^8 Subsections (1) and (m) were added bv Sec. 2(1) (H) of the Overseas Private Invest- 
ment Corporation Amendments Act of 1974 (Public Law 93-390). 



43 

ing, and reinsurance activities to investment projects in the less 
developed friendly countries which have per capita incomes of 
$450 or less in 1973 United States dollars; and 

(m)^*^(l) to decline to issue any contract of insurance or rein- 
surance, or any guaranty, or to enter into any agreement to pro- 
vide financing for an eligible investor's proposed investment if 
the Corporation determines that such investment is likely to cause 
such investor (or the sponsor of an investment project in which 
such investor is involved) significantly to reduce the number of 
his employees in the United States because he is replacing his 
United States production with production from such investment 
which involves substantially the same product for substantially 
the same market as his United States production; and (2) to 
monitor conformance with the representations of the investor on 
which the Corporation relied in making the determination re- 
quired by clause (1). 
Sec. 232.'*^ Capital of the Corporation.— The President is au- 
thorized to pay in as capital of the Corporation, out of dollar receipts 
made available through the appropriation process from loans made 
pursuant to this part and from loans made under the Mutual Security 
Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,- 
000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the 
payment of such capital by the President, the Corporation shall issue 
an equivalent amount of capital stock to the Secretary of the Treasury. 
Sec. 233.^''^ Organization and Management. — (a) Structure of 
the Corporation. — The Corporation shall liave a Board of Directors, 
a President, an Executive Vice President, and such other officers and 
staff as the Board of Directors may determine. 

(b) Board of Directors. — All powers of the Corporation shall vest 
in and be exercised by or under the authority of its Board o.f Directors 
("the Board") which shall consist of eleven Directors, including the 
Chairman, with six Directors constituting a quorum for the trans- 
action of business. The Administrator of the Agency for International 
Development shall be the Chairman of the Board, ex officio. Six Direc- 
tors (other than the President of the Corporation, appointed pur- 
suant to subsection (c) who shall also serve as a Director) shall be 
appointed by the President of the United States, by and with the 
advice and consent of the Senate, and shall not be officials or employees 
of the Government of the United States. As least one of the six Direc- 
tors appointed under the preceding sentence shall be experienced in 
small business, one in organized labor, and one in cooperatives. Each 
such Director shall be appointed for a term of no more than three 
years. The terms of no more than two such Directors shall expire in any 
one year. Such Directors shall serve until their successors are appointed 
and qualified and may be reappointed. 

The other Directors shall be officials of the Government of the United 
States, desionated by and serving at the pleasure of the President of 
the United States. 



149 22 use 2192. Sec. 232 was added by Sec. 105 of the FAAct of 19G9. 

150 22 use 2193. Sec. 233 was added by Sec. 105 of the FAAct of 1909. 



44 

All Directors who are not officers of the Corporation or officials of 
the Government of the United States shall be compensated at a rate 
equivalent to that of level IV of the Executive Schedule (5 U.S.C. 
6315) when actually engaged in the business of the Corporation and 
may be paid per diem in lieu of subsistence at the applicable rate pre- 
scribed in the standardized Government travel regulations, as 
amended, from time to time, while away from their homes or usual 
places of business. 

(c) President of the Corporation. — The President of the Corpora- 
tion shall be appointed by the President of the United States, by and 
witli the advice and consent of the Senate, and shall serve at the 
pleasure of the President. In making such appointment, the President 
shall take into account private busmess experience of the appointee. 
The President of the Corporation shall be its Chief Executive Officer 
and responsible for the operations and management of the Corpora- 
tion, subject to bylaws and policies established oy the Board. 

(d) Officers and staff. — The Executive Vice President of the 
Corporation shall be appointed by the President of the United States, 
by and with the advice and consent of the Senate, and shall serve at 
(he pleasure of the President. Other officers, attorneys, employees, and 
agents shall be selected and appointed by the Corporation, ana shall be 
vested with such powers and duties as the Corporation may determine. 
Of such persons employed by the Corporation, not to exceed twenty 
may be appointed, compensated, or removed without regard to the civil 
service laws and legulations: Provided^ That under such regulations 
as the President of the United States may prescribe, officers and em- 
ployees of the United States Government who are appointed to any of 
the above positions may be entitled, upon removal from such position, 
except for cause, to reinstatement to the position occupied at the time 
of appointment or to a position of com|)arable gfrade and salary. Such 
positions shall be in addition to those otheiwise authorized by law, 
including those authorized by section 5108 of title 5 of the United 
States Code. 

Sec. 234.^^1 Investment Insurance and Other Programs.^^^— The 
Corporation is hereby authorized to do the following: 

(a) Investment Insurance.— (1) To issue insurance, upon such 
terms and conditions as the Cori)0!ation may determine, to eligible 
investors assuring piotection in whole or in part against any or all of 
the following risks with respect to projects which the Corporation has 
approved — 

(A) inability to convert into United States dollars other cur- 
rencies, or credits in such currencies, received as earnings or profits 
from the approved project, as repayment or return of the invest- 
ment therein, in whole or in part, or as compensation for the sale 
or disposition of all or any part thereof ; 

(B) loss of investment, in whole or in part, in the approved 
project due to expiopriation or confiscation by action of a foreign 
government ; and 

(C) loss due to war, revolution, or insurrection. 

^1 22 use 2194. Sec. 234 was added by Sec. 105 of the FAAct of 1969. * * <. p 

152 gee 2(2) (A) of the Overseas Private Investment Corporation Amendments Act or 

1974 (Public Law 93-390) substituted section caption "Investment Insurance and Other 

Programs" in lieu of "Investment Incentive Programs". 



45 

^2)153 Recognizing that major private investments in less developed 
friendly countries or areas are often made by enterprises in which 
there is multinational participation, including significant United 
States private participation, the Corporation may make arrangements 
with foreign governments (including agencies, instrumentalities, or 
political subdivisions thereof) or with multilateral organizations and 
institutions for sharing liabilities assumed under investment insurance 
for such investments and may in connection therewith issue insurance 
to investors not otherwise eligible hereunder, except that liabilities 
assumed by the Corporation under the authority of this subsection 
sliall be consistent with the purposes of this title and that the maximum 
share of liabilities so assumed shall not exceed the proportionate par- 
ticipation by eligible investors in the total project financing, and that 
the maximum share of liabilities so assumed under paragraph (1) (A) 
and (B) or paragraph (1) (C) shall not exceed the Corporation's pro- 
portional share of such liabilities as specified in paragraph (4) or (5) 
of this subsection. 

(3) Not more than 10 per centum o.f the total face amount of invest- 
ment insurance which the Corporation is authorized to issue under this 
subsection shall be issued to a single investor. 

(4)154 (^) j^ jg ^i^g intention of Congress that the Corporation 
achieve participation by private insurance companies, multilateral 
oiganizations, or others in liabilities incurred in respect of the risks 
referred to in paragraphs (1)(A) and (B) of this subsection under 
contracts issued on and after January 1, 1975, of at least 25 per centum, 
and, under contracts issued on and after January 1, 1978, of at least 
50 per centum. If for good reason it is not possible for the Corpora- 
tion to achieve cither such percentage of participation, the Corpora- 
tion shall report in detail to the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs of the House of 
Repiesentatives the reasons for its inability to achieve either such 
parentage of participation, and the date by which such percentage is 
to be achieved. 

(B) iiie Corporation shall not participate as insurer under con- 
tiacts of insurance issued after December 31, 1979, in respect of the 
rislcs referred to in paragraphs (1) (A) and (B) of this subsection un- 
less Congress by law modifies this paragi'aph. 

(5)^^* (A) It is the intention of Congress that the Corporation 
achieve participation by private insurance companies, multilateral 
ojganizations, or others in liabilities incurred in respect of the risks 
referred to in paragrajih (1)(C) of this subsection under contracts 
issued on and after January 1, 1976, of at least 121/^ per centum, and 
under contracts issued on and after Jaimary 1, 1979, of at least 40 per 

'^Subsection (a)(2) was amended by Sec. 2(2) (B) of the Overpe-^s Private Investment 
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: 
"(2) Recognizing that nui.ior private invesimen s in less ('evelnpei friendly countries in 
areas are often made by enterprises in which there is multinational participation, includ- 
ing significant United States i rivate participation, the Corporation may make such arrange- 
ments with foreign governments (including agencies, instrumentalities, or political sub- 
divisions thereof) or with multilateral organizations for sharing liabilities assumed under 
investment onsurance for such investments and may in connection therewith issue insurance 
to investor.s not otherwise eligible hereunder : Provided, however. That liabilities assumed 
by the Corporation under the authority of this subsection shall be consistent with the pur- 
poses of this title and that the maximum share of liabilities so assumed shall not exceed 
the proportionate participation by eligible investors in the total project financing." 

^'*F9P. 2(2) (C> of +he O-e-seas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added paragraphs (4), (5), (6), and (7). 



46 

centum. If for good reason it is not popsiblo for tlio Porporntion to 
achieve eitlier such percenta<^e of participation, the Corporation shall 
report in detail to the Committee on Foreign Relations of the Senate 
and the Committee on Foreign Affairs of the House of Representatives 
the reasons foi- its inability to achieve eitlier such percentage of par- 
ticii)ation and the date by which such percentage is to be achieved. 

(B) The (Corporation sliall not paiticipatc as insurer under con- 
tracts of insurance issued after December 31, 1980, in respect of the 
risks referred to in paragraph (1) (C) of this subsection unless Con- 
giess by law modifies this paragraph. 

(6)^^* Notwithstanding any of the percentages of participation 
under paragraphs (4) (A) and (5) (A) of this subsection, the Corpo- 
ration may agree to assume liability as insurer for any contract of 
insurance, or share thereof, that a private insurance company, niulti- 
lateial organization, or any other person lias issued in respect of the 
risks referred to in paragraph (1) of this subsection, and neither the 
execution of any such agreement to assume liability nor its perform- 
ance by the Corporation shall be considered as participation by the 
Corporation in any such contract for purposes of such percentages of 
participation. On and after January 1, 1981, the Corporation shall not 
enter into any such agreement to assume liability. 

(Y)i54 Qj^ r^j^^ after December 81, 1979, the Corporation shall not 
manage direct insurance issued after such date in respect of risks re- 
ferred to in paragraph (1) (A) or (B) of this subsection unless Con- 
gress by law modifies this sentence. On and after December 31, 1980, 
the Corporation shall not manage direct insurance issued after such 
date in respect of risks referred to in paragraph (1) (C) of this sub- 
section unless Congress by law modifies this sentence. It shall there- 
after act solely as a reinsurer except to the extent necessary to manage 
its outstanding insurance and reinsurance contracts and any contracts 
of insurance the Corporation assumes pursuant to paragraph (6). 

(b) Investment Guaranties. — To issue to eligible investors guar- 
anties of loans and other investments made by such investors assuring 
against loss due to such risks and upon such terms and conditions as 
the Corporation may determine : Provided^ however, That such guar- 
anties on other than loan investments shall not exceed 75 per centum 
of such investment: Provided further. That except for loan invest- 
ments for credit unions made by eligible credit unions or credit union 
associations, the aggiegate amount of investment (exclusive of inter- 
est and earnings) so guaranteed with respect to any project shall not 
exceed, at the time of issuance of any such guaranty, 75 per centum of 
the total investment committed to any such project as determined by 
the Corporation, which determination shall be conclusive for purposes 
of the Corporation's authority to issue any such guaranty: Provided 
further, That not more than 10 per centum of the total face amount 
of investment guaranties which the Corporation is authorized to 
issue under this subsection shall be issued to a single investor. 

(c) Direct Investment — To make loans in United States dollars 
repayable in dollars or loans in foreign currencies (including, without 
regard to section 1415 of the Supplemental Appropriation Act, 1953, 
such foreign curencies which the Secretary of the Treasury may deter- 
mine to be excess to the normal requirements of the United States and 



47 

the Director of the Bureau of the Budget may allocate) to firms pri- 
vately owned or of mixed private and public ownership upon such 
terms and conditions as the Corpoiation may determine. The Corpoi-a- 
tion may not purciiase or invest in any stock in any other corporation, 
except that it may (1) accept as evidence of indebtedness debt secu- 
rities convertible to stock, but such debt securities shall not be con- 
verted to stock while held by the Corporation, and (2) acquire stock 
through the enforcement of any lien or pledge or otherwise to satisfy 
a previously contracted indebtedness which would otherwise be in 
default, or as the result of any payment under any contract of insur- 
ance or guaranty. The Corporation shall dispose of any stock it may 
so acquire as soon as reasonably feasible under the circumstances then 
pertaining. 

No loans shall be made under this section to finance operations for 
mining or other extraction of any deposit of ore, oil, gas, or other 
mineral. 

(d) Investment Encouragement. — To initiate and support 
through financial participation, incentive grant, or otherwise, and on 
such terms and conditions as the Corporation may determine, the 
identification, assessment, surveying and promotion of private invest- 
ment opportunities, utilizing wherever feasible and effective the fa- 
cilities of private investors : Provided^ however^ That the Corporation 
shall not finance surveys to ascertain the existence, location, extent 
or quality, or to determine the feasibility of undertaking operations 
for mining or other extraction, of any deposit of ore, oil, gas, or other 
mineral. In carrying out this authority, the Corporation shall co- 
ordinate with such investment promotion activities as are carried 
out by the Department of Commerce. 

(e) Special Activities. — To administer and manage special projects 
and programs, including programs of financial and advisory support 
which provide private technical, professional, or managerial assist- 
ance in the development of human resources, skills, technology, 
capital savings and intermediate financial and investment institutions 
and cooperatives. The funds for these projects and programs may, 
with the Corporation's concurrence, be transferred to it for such pur- 
poses under the authority of section 632(a) or from other sources, pub- 
lic or private. 

(f)i55 Other Insurance Functions. — (1) To make and carry out 
contracts of insurance or reinsunuice, or agreements to associate or 
share risks, with insurance companies, financial institutions, any other 
persons, or groups thereof, and employing the same where appropriate, 
as its agent, or acting as their agent, in the issuance and servicing of 
insurance, the adjustment of claims, the exercise of subrogation rights, 
the ceding and accepting of reinsurance, and in any other matter 
incident to an insurance business. 

(2) To enter into pooling or other risk-sharing agreements with 
other national or multinational insurance or financing agencies or 
groups of such agencies. 

(3) To hold an ownership inforost in any as'^ooiation or other entity 
established for the purposes of sharing risks under investment 
insurance. 



L 



^Subsection (f) was added by Sec. 2(2) (D) of the Overseas Private Investment Cor- 
poration Amendments Act of 1974 (Public I^w 1)3 -3'H)) 



48 

(4) To issue, upon such terms and conditions as it may determine, 
reinsurance of liabilities assumed by other insurers or groups thereof 
in respect of risks referred to in subsection (a) (1). 

The authority granted by paragraph (3) may be exercised notwith- 
standing the prohibition under subsection (c) against the Coiporation 
purchasing or investing in any stock, in any other corporation. The 
amount of rehisurance of liabilities under this title which the Cor- 
poration may issue shall not exceed $()()0,0()0,OU() in any one year, and 
the amount of such reinsurance shall not in the aggregate exceed at 
any one time an amount equal to the amount authorized for the niaxi- 
nmm contingent liability outstanding at any one time under section 
235(a)(1). All reinsiiijijue issued by the (•orporation under this sub- 
section shall re(niire that the reinsured paity retain for his own ac- 
count specified poitions of liability, whether fii-st loss or otherwise, 
and the Coipoiation shall endeavor to increase such specified portions 
to the mnxinumi extent possible. 

Sec. 235.^ '^ Issuing Authority, Direct Inves^n^ent Fund ?nd 
Reserves. — (a)(1) The maximum contingent liability outstanding 
at any one time pursuant to ijisuiaiice issued uniler section 234(a) 
shall not exceed $7,r)()0,(K)0,00(). 

(2) The maxinuun contingent liability outstanding at any one time 
pursuant to guaianties issued undei* section 234(b) shall not exceed in 
the aggregate $750,000,000, of which guaranties of ci'edit union invest- 
ment shall not exceed $1,250,000: Protrlded^ That the Corporation 
shall not make any commitment to issue any guaranty whicn would 
result in a fractional reserve less than 25 per centum of the maximum 
contingent liability then outstanding against guaianties issued or 
commitments made pursuant to section 234(b) or similar predecessor 
guaranty authority. 

(3) The Congress, in considering the budget programs transmitted 
by the President for the Corporation, pursuant to section 104 of the 
Government Corpoiation Control Act, as amended, may limit the ob- 
ligations and contingent liabilities to be undertaken under section 
234(a) and (b) as well as the use of funds for operating and adminis- 
trative expenses. 

(4) The authority of section 234 (a) and (b) shall continue until 
December 31, 1977.^" 

» (b) There shall be established a revolving fund, known as the Direct 
Investment Fund, to be held by the Corporation. Such fund shall con- 
sist initially of amounts made available under section 232, shall be 
available for the purposes authorized under section 234(c), shall be 
charged with realized losses and credited with realized gains and shall 
be credited with such additional sums as may be transferred to it under 
the provisions of section 236. 

(c) There shall be established in the Treasury of the United States 
an insurance and guaranty fund, which shall have separate accounts 
to be known as the Insurance Reserve and the Guaranty Reserve, 
which reserves shall be available for discharge of liabilities, as pro- 
vided in section 235 (d) , until such time as all such liabilities have been 

156 22 use 219o. Sec. 2.3o was added by Sec. lOo of the FAAct of 19G9. 
IS' Sec. 2(3) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted "1974". 



49 

discharged or have expired or until all such reserves have been ex- 
pended m accordance with the provisions of this section. Such fund 
shall be funded by: (1) the funds heretofore available to discharge 
liabilities under predecessor guaranty authority (including housijig 
guaranty authorities), less both the amount made available for hous- 
uig guaranty programs pui-suant to section 223(b) and the amount 
made available to the Corporation pursuant to section 234(e) ^^^; and 
(2) such sums as shall be appropriated pursuant to section 235(f) for 
such purposes. The allocation of such funds to each such reserve shall 
bo determiiied by the Board after consultation with the Secretary of 
the Treasury. Additional amounts may thereafter be transferred to 
such reserves pursuant to section 236. 

(d) Any payment made to discharge liabilities under investment 
insurance or reinsurance issued under section 234 ^^^ or under similar 
predecessor guaranty authority shall be paid fii-st out of the Insurance 
Reserve, as long as such reserve remains available, and thereafter out 
of funds made avaihible pursuant to section 235(f). Any payments 
made to discharge liabilities under guaranties issued under section 
234(b) or under similar predecessor guaranty authority shall be paid 
fii-st out of the Guaranty Reserve as long as such reserve remains 
available, and thereafter out of funds made available pui*suant to sec- 
tion 235(f). 

(e) There is hereby authorized to be transferred to the Corpora- 
tion at its call, for the purposes specified in section 236, all fees and 
other reveimes collected under predecessor guaranty authority from 
December 31, 1968, available as of the date of such transfer. 

(^fy&o xhere are authorized to be appropriated to the Corporation, to 
remain available until expended, such amounts as may be necessary 
from time to time to replenish or increase the insurance and guaranty 
fund, to discharge the liabilities under insurance, reinsurance, or guar- 
anties issued by the Corporation or issued under predecessor guaranty 
authority, or to discharge obligations of the Corporation purchased 
by the Secretary of the Treasury pursuant to this subsection. How- 
ever, no appropriations shall be made to augment the Insurance Re- 
serve until the amount of funds in the Insurance Reserve is less than 
$25,000,000. Any appropriations to augment the Insurance Reserve 
shall then only be made either pursuant to specific authorization en- 
acted after the date of enactment of the Overseas Private Investment 
Corporation Amendments Act of 1974, or to satisfy the full faith and 
credit provision of section 237(c). In order to discharge liabilities 
under investment insurance or reinsurance, the Corporation is author- 
ized to issue from time to time for purchase by the Secretary of the 
Treasury its notes, debentures, bonds, or other obligations; but the 
aggregate amount of such obligations outstanding at any one time 
shall not exceed $100,000,000. Ajiy such obligation shall be repaid to 

1.-* ijjp rorrec*- reference i" "section 23n(er'. 

i^s Sec. 2(3) (B) of the Overseas Private Investment 'Corporation Amendments Act of 
1974 (Public Law 93-390) substituted 'Insurance or reinsurance Issued under section 234" 
in lieu of "Insurance issued under section 234(a)". 

I®' Subsection (f) wns amenriefl bv Sec. 2(3) (C) o^" the Over'^eas Private Investment 
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: 
"(f) There is hereby authorized to be appropriated to the Corporation, to remain available 
until expended, such amounts as may be necessary from time to time to replenish or 
Increase the insurance and guaranty fund or to discharge the liabilities under Insurance 
and guaranties Issued by the Corporation or issued under predecessor guaranty authority". 



50 

the Treasury within one year after the date of issue of such obliga- 
tion. Any such obligation shall bear interest at a rate determined oy 
the Secretary of the Treasury, taking into consideration the current 
average market yield on outstanding marketable obligations of the 
United States of comparable maturities during the month preceding 
the issuance of any obligation authorized by this subsection. The Sec- 
retary of the Treasury shall purchase any obligation of the Corpora- 
tion issued under this subsection, and for such purchase he may use as 
a public debt transaction the proceeds of the sale of any securities 
issued under the Second Liberty Bond Act after the date of enactment 
of the Overseas Private Investment Corporation Amendments Act of 
11)74. The purpose for which securities may be issued under such Bond 
Act shall include any such purchase. 

Sec. 236.^*^^ Income and Revenues. — In order to carry out the 
purposes of the Corporation, all revenues and income transferred to 
or earned by the Corporation, from whatever source derived, shall be 
held by the Corpoiation and shall be available to carry out its purposes, 
including without limitation — 

(a) payment of all expenses of the Corporation, including in- 
vestment promotion expenses ; 

(b) transfers and additions to the insurance or guaranty re- 
serves, the Direct Investment Fund established pursuant to section 
235, and such other funds or reserves as the Corporation may 
establish, at such time and in such amounts as the Board may de- 
termine ; and 

(c) payment of dividends, on capital stock, which shall consist 
of and be paid from net earnings of the Corporation after pay- 
ments, transfers, and additions under subsections (a) and (b) 
hereof. 

Sec. 237.^®^ General Provisions Relating to Insurance and 
Guaranty Prograkii. — (a) Insurance, guaranties, and reinsurance^"' 
issued under this title shall cover investment made in connection with 
projects in any less developed friendly country or area with the govern- 
ment of which the President of the United States has agreed to in- 
stitute a program for insurance, guaranties, or reinsurance.^*^* 

(b) The Corporation shall determine that suitable arrangements 
exist for protecting the interest of the Corporation in connection with 
any insurance, guaranty or reinsurance ^^^ issued under this title, in- 
cluding arrangements concerning ownership, use, and disposition 
of the currency, credits, assets, or investments on account of which pay- 
ment under such insurance, guaranty, or reinsurance ^^^ is to be made, 
and right, title, claim, or cause of action existing in connection 
therewith. 

(c) All guaranties issued prior to July 1, 1956, all guaranties issued 
under sections 202(b) and 413(b) of the Mutual Security Act of 1954, 

i«i 22 use 2196. Sec. 236 was added by Sec. 105 of the FAAct of 1969. 

162 22 use 2197, Sec. 237 was added by Sec. 105 of the FAAct of 1969. 

i« Sec. 2(4) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words ", guaranties, and reinsurance" In lieu 
of "and guaranties". 

i«* Sec. 2(4) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words, "guaranties, or reinsurance" in lieu of 
"or guaranties". 

i<^ Sec. 2(4) (B) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words, "guaranty or reinsurance" in lieu of 
"or guaranty". 



51 

as amended, all ^aranties heretofore issued pursuant to prior guaranty 
authorities repealed by the Foreign Assistance Act of 196D, and all 
insurance, reinsurance/^^ and guaranties issued pursuant to this title 
shall constitute obligations, in accordajice with the terms of such in- 
surance, reinsurance,^^® or guaranties, of the United States of America 
and the full faith and credit of the United States of America is hereby 
pledged for the full payment and performance of such obligations. 

(d) ^^^ Fees shall be charged for insurance, guaranty, and reinsurance 
coverage in amounts to be determined by the Corporation. In the event 
fees charged for investment insurance, guaranties, or reinsurance are 
reduced, fees to be paid under existing contracts for the same type of 
insurance, guaranties, or reinsurance and for similar guaranties issued 
under predecessor guaranty authority may be reduced. 

(e) No insurance, guaranty, or reinsurance ^®^ of any equity mvest- 
ment shall extend beyond twenty years from the date of issuance. 

(f ) No insurance, reinsurance,^®^ or guaranty issued under this title 
shall exceed the dollar value, as of the date of the investment, of the 
investment made in the project with the approval of the Corporation 
plus interest, earnings or profits actually accrued on said investment to 
the extent provided by such insurance, reinsurance ^®^ or guaranty. Not- 
withstanding the preceding sentence, the Coi-poration shall limit the 
amomit of direct insurance and reinsurance issued by it under section 
234 so that risk of loss as to at least 10 per centum of the total invest- 
ment of the insured and its affiliates in the project is borne by the in- 
sured and such affiliates. The preceding sentence shall not apply to the 
extent not permitted by State law.^^° 

(g) No paymejit may be made under any guaranty, insurance or re- 
insurance ^^^ issued pursuant to this title for any loss arising out of 
fraud or misrepresentation for which the party seekuig payment is 
responsible. 

(h) Insurance, guaranties, or reinsurance ^^^ of a loan or equity in- 
vestment of an eligible investor in a foreign bank, hiiance company, or 
other credit institution shall extend only to such loan or equity invest- 
ment and not to any individual loan or equity investment made by 
such foreign bank, tinance company, or other credit institution. 

(i) Claims arising as a result of insurance, reinsurance^" or guar- 
anty operations under this title or under predecessor guaranty au- 

^«« Sec. 2(4) (C) of t'ne Overseas Private Investment Corporation Amendments Act of 
1U74 (Public Law U3-3'J0) added the word, "reiusurance". 

!«• Subjection (d) was amended by Sec. 2(4) (Dj of the Overseas Private Investment 
Corporation Amendments Act of 1974 (Public Law y3-3»0). it formerly read as follows: 
"(d; Fees shall be charged for insurance and guaranty coverage in amounts to be deter- 
mined by the Corporation. In the event fees to be charged lor investment insurance or 
guaranties are reduced, fees to be paid under existing contracts for the same type of 
guaranties or insurance and for similar guaranties issued under predecessor guaranty 
authority nmy be reduced". 

^•^^ !Sec. 2(-±)(ii,) oi tne Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words ", guaranty, or reinsurance" in Ueu of 
"or guaranty". 

163 Sec. 2(4) (F) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the word **. reinsurance". 

1™ Sec. 2(4) (G) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the last two sentences of subsection (f) beginning with 
"Notwithstanding the preceding sentence, • * •" 

1'^ Sec. 2(4) (H) of the Overseas Private Invesment Corporation Amendments Act of 
1974 (Public Law 93-390) added the words **, Insurance, or reinsurance". 

1"=^ Sec. 2(4) (I) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words **, guaranties, or reinsurance" In lieu 
of "or guaranties". 

1" Sec. 2(4) (J) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the word *', reinsurance". 



52 

thority may be settled, and disputes arising as a result thereof may 
be arbitrated with the consent of the parties, on such terms and condi- 
tions as the Corporation may determine. Payment made pursuant to 
any such settlement, or as a result of an arbitration award, shall be 
final and conclusive notwithstanding any other provision of law. 

(j) Each guaranty contract executed by such officer or officers as may 
be designated by the Board shall be conclusively presumed to be issued 
in compliance with the requirements of this Act. 

(k)^"'' Tn making a dotorminatioii to issue insurance, guaranties, or 
reinsurance under this title, the Corporation shall consider the possible 
adverse effect of the dollar investment under such insurance, guaranty, 
or reinsurance upon the balance of payments of the United States. 

Sec. 238."^ Definitions. — As used in this title — 

(a) the term "investment" includes any contribution of funds, 
commodities, services, patents, processes, or techniques, in the 
form of (1) a loan or loans to an approved project, (2) the pur- 
chase of a share of ownership in any such project, (3) participa- 
tion in royalties, earnings, or profits of any such project, and (4) 
the furnishing of commodities or services pursuant to a lease or 
other contract ; 

(b) the term "expropriation" includes, but is not limited to, any 
abrogation, repudiation, or impairment by a foreign government 
of its own contract with an investor with respect to a project, 
where such abrogation, repudiation, or impairment is not caused 
by the investor's own fault or misconduct, and materially ad- 
versely affects the continued operation of the project ; 

(c) the term "eligible investor" means: (1) United States 
citizens; (2) corporations, partnerships, or other associations in- 
cluding nonprofit associations, created under the laws of the 
United States or any State or territory thereof and substantially 
beneficially owned by United States citizens; and (3) foreign 
corporations, partnerships, or other associations wholly owned 
by one or more such United States citizens, corporations, partner- 
ships, or other associations : Provided however^ That the eligibility 
of such foreign corporation shall be determined without regard 
to any shares, in aggregate less than 5 per centum of the total 
issued and subscribed share capitak^"^^ held by other than the 
United States owners : Provided further^ That in the case of any 
loan investment a final determination of eligibility may be made 
at the time the insurance or guaranty is issued ; in all other cases, 
the investor must be eligible at the time a claim arises as well as 
the time the insurance or guaranty is issued ; and 

(d) the term "predecessor guaranty authority" means prior 
guaranty authorities (other than housing guaranty authorities) 
repealed by the Foreign Assistance Act of 1969, section 202(b) 
and 413(b) of the Mutual Security Act of 1954, as amended, and 

1"! Subsection fk) was amended bv Sec. 2(4) (K) of the Overseas Private Investment 
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: 
"(k) In makinjr a determination to issue insurance or a guaranty under this title, the 
Corporation shall consider the possible adverse effect of the dollar investment under such 
Insurance or cuaranty upon the balance of payments of the United States". 

1"-' 22 use 219S. Sec. 238 was added l)y Sec. lOo of the FAAct of 1969. 

^•« The words "required by Law to be", which appeared at this point were struck out 
by Sec. 104(a) of the FAAct of 1971. 



53 

section 111 (b) (37 of the Economic Cooperation Act of 1948, as 
amended (exclusive of authority relating to informational media 
guaranties) . 
Sec. 239.^'' General Provisions and Powers.— (a) The Corpora- 
tion shall have its principal office in the District of Columbia and shall 
be deemed, for purposes of venue in civil actions, to be resident thereof. 

(b) The President shall transfer to the Corporation, at such time as 
he may determine, all obligations, assets and related rights and re- 
sponsibilities arising out of, or related to, predecessor programs and 
authorities similar to those provided for in section 234 (a), (b), and 
(d). Until such transfer, the agency heretofore responsible for such 
predecessor programs shall continue to administer such assets and 
obligations, and such programs and activities authorized under this 
title as may be determined by the President.^"^ 

On December 31, 1979, the Corporation shall cease operating the 
programs authorized by section 234 (b) through (e) and section 240. 
Thereafter, the President is authorized to transfer such programs, and 
all obligations, assets, and related rights and responsibilities arising 
out of, or related to, such programs to other agencies of the United 
States. Upon any such transfer, these programs shall be limited to 
countries with per capita income $450 or less in 1973 dollars.^'^ 

(c) The Corporation shall be subject to the applicable provisions of 
the Government Corporation Control Act, except as otherwise pro- 
vided in this title. 

(d) To carry out the purposes of this title, the Corporation is au- 
thorized to adopt and use a corporate seal, which shall be judicially 
noticed; to sue and be sued in its corporate name; to adopt, amend, 
and repeal bylaws governing the conduct of its business and the per- 
formance of the powers and duties granted to or imposed upon it by 
law ; to acquire, hold or dispose of, upon such terms and conditions as 
the Corporation may determine, any property, real, personal, or mixed, 
tangible or intangible, or any interest therein ; to invest funds derived 
from fees and other revenues in obligations of the United States and to 
use the proceeds therefrom, including earnings and profits, as it shall 
deem appropriate; to indemnify directors, officers, employees and 
agents of the Corporation for liabilities and expenses incurred in con- 
nection with their Corporation activities ; to require bonds of officers, 
employees, and agents and pay the premiums therefor ; notwithstand- 
ing any other provision of law, to represent itself or to contract for 
representation in all legal and arbitral proceedings ; to purchase, dis- 
count, rediscount, sell, and negotiate, with or without its endorsement 
or guaranty, and guarantee notes, participation certificates, and other 
evidence of indebtedness (provided that the Corporation shall not 
issue its own securities, except participation certificates for the purpose 
of carrying out section 231 (c) ) ; to make and carry out such contracts 
and agreements as are necessary and advisable in the conduct of its 
business; to exercise the priority of the Government of the United 
States in collecting debts from bankrupt, insolvent, or decedents' 

i" 22 ISC 2100. Sec. 239 was added bv Sec; 105 of the F.\Act of 1960. 

iTs^x. Presidential Determination of Dec. 30, 1969, provided for AID administration 
until transfer to the Overseas Private Investment Corporation. 

i"'* Subsection (b) was amended by See. 2(5) (A) of the Overseas I'rivate Investment 
Corporation Amendments Act of 1974 (Public Law 93-390) by adding the last three 
sentences beginning with the words "On December 31, 1979, * * *." 



54 

estates; to determine tlie character of and tlie necessity for its obliga- 
tions and expenditures, and the manner in which they shall be in- 
curred, allowed, and paid, subject to proA'isions of law specifically 
applicable to Government corporations; and to take such actions as 
may be necessary or appropriate to carry out the powers herein or 
hereafter specifically conferred upon it. 

(e) The Auditor-General of the Agency for International Develop- 
ment (1) shall have the responsibility for planning and directing the 
execution of audits, reviews, investigations, and inspections of all 
phases of the Corporation's operations and activities and (2) shall 
conduct all security activities of the Corporation relating to personnel 
and the control of classified material. With respect to his responsi- 
bilities under this subsection, the Auditor-General shall report to the 
Board. The agency primarily responsible for administermg part I 
shall be reimbursed by the Corporation for all expenses incurred by 
the Auditor-General in connection with his responsibilities under this 
subsection. 

(f) In order to further the purposes of the Corporation there shall 
be established an Advisory Council to be composed of such representa- 
tives of the American business community as may be selected by the 
Chairman of the Board. The President and tlie Board shall, from time 
to time, consult with such Council concerning the objectives of the 
Corporation. Members of the Council shall receive no compensation 
for their services but shall be entitled to reimbursement in accordance 
with section 5703 of title 5 of the United States Code for travel and 
other expenses incurred by them in the performance of their functions 
under this section. 

(or) 180 Except for the provisions of this title, no other provision of 
this or any other law shall be construed to prohibit the operation in 
Yugoslavia or Romania of the programs authorized by this title, if 
the President determines that the operation of such program in such 
country is important to the national interest. 

(h)^®^ Witliin six months after the date of enactment of this sub- 
section, the Corporation shall develop and implement specific criteria 
intended to minimize the potential environmental implications of proj- 
ects undertaken by investors abroad in accordance with any of the pro- 
grams authorized by this title. 

Sec. 240.1^2 * * * [Repealed— 1974] 

Sec. 240A.^«^ Reports to the Congress. — (a) After the end of each 
fiscal year, the Corporation shall submit to the Congress a complete 
and detailed report of its operations during such fiscal year. 

(b)i«* Not later than January 1, 1976, the Corporation shall submit 
to the Congress an analysis of the possibilities of transferring all of its 
activities to private insurance companies, multilateral organizations 
and institutions, or other entities. 

180 Subsection (g) was added by Sec. 104(b) of the FAAct of 1971. 

181 Subsection (h) was added by Sec. 2(5) (B) of the Overseas Private Investment Cor- 
poration Amendments Act of 1974 (Public Law 93-390). 

182 Sec. S(b) of the FAAct of 1974 struck out former Sec. 240 which related to agricul- 
tural credit and self-help community development projects. 

183 22 use 2200a. Sec. 240A was added by Sec. 105 of the FAAct of 1969. 

18* Subsection (b) Avas amended bv Sec. 2(7) of the Overseas Private Investment Cor- 
poration Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: "Not 
later than March 1, 1974. the Corporation shall submit to the Congress an analysis of 
the possibilities of transferring all or part of Its activities to private United States 
citizens, corporations, or other associations". 



55 

Title V-^evelopment Research 
Sec. 241.185 General Authority.—* * * [Eepealed— 1975] 
Title VI— Alliance for Progress ^« 

Sec. 251.^^' General Authority.— (a) It is the sense of the Congress 
that the historic, economic, political and geographic relationships 
among the American peoples and Republics are unique and of special 
significance and that the Alliance for Progress offers great hope for 
the advancement of the welfare of the peoples of the Americas and the 
strengthening of the relationships among them. It is further the sense 
of Congress that vigorous measures by the countries and areas of Latin 
America to mobilize their own resources for economic development 
and to adopt reform measures to spread the benefits of economic prog- 
ress among the people are essential to the success of the Alliance for 
Progress and to continued significant United States assistance there- 
under. The President is authorized to furnish assistance on such terms 
and conditions as he may determine in order to promote the economic 
development of countries and areas in Latin America. 

(b) Assistance furnished under this title shall be directed toward 
the development of human as well as economic resources. In furnishing 
assistance under this title, the President shall take into account (1) 
the principles of the Act of Bogota ^^^ and the Charter of Punta del 
Este.^-^ and in particular the extent to which the recipient countiT or 
area is showing a responsiveness to the vital economic, political, and 
social concerns of its people and demonstrating a clear determination 
to take effective self-help measures; (2) the economic and technical 
soundness of the activity to be financed; (3) the consistency of the 
activity with, and its relationship to, other development activities 
being undertaken or planned, and its contribution to realizable long- 
range objectives: ^^° (4) the possible effects upon the United States 
economy, with special reference to areas of substantial labor surplus, 
of the assistance involved; (5) the degree to which the recipient coun- 
try is making progress toward respect for the rule of law, freedom of 
expression and of the press, and recognition of the importance of in- 
dividual freedom, initiative, and private enterprise; (6) the degree to 
which the recipient country is taking steps to improve its climate for 
private investment; (7) whether or not the activity to be financed will 
contribute to the achievement of self-sustaining growth; and (8) the 
extent to which the activity to be financed will contribute to the eco- 
nomic or political integration of Latin America. In making loans 
under this title from funds which are required to be used for loans 
payable as to principal and interest in United States dollars, the 

i«Sec. 306(1) of Public Law 94-161 (89 Stat. 849) repealed Sec. 241. It formerly read 
as follows: "Sec. 241. General Authority. — (a) The President is authorized to use funds 
made available for this part to carry out programs of research into, and evaluation of, the 
process of economic development in less developed friendly countries and areas, into the 
factors affecting the relative success and costs of development activities, and into the 
means, techniques, and such other aspects of development assistance as he may determine 
in order to render such assistance of increasing value and benefit, (b) Funds made availa- 
ble to carry out this section may be used to conduct research into the problems of 
population growth." 

i« Title VI was added bv Sec. 106 of the FAAct of 1962. 

i"22 use 2211. Sec. 251 was added by Sec. lOG of the FAAct of 1902. 

^® For text, see Vol. III. page 69."). 

^* For text, see Vol. Ill pase 701. 
^w' Sec. 105(a)(1) of the FAAct of 1966 struck out the word "and" which appeared at 
the end of clause (3), substituted the semicolon for a period at the end of clause (4), and 
added clauses (5), (6), (7), and (8). 



56 

President shall take into account, in addition to the considerations 
named in the preceding sentence, whether lijiancing could be obtained 
in whole or in part fioni othei* free world sources on leasonable terms 
(including private sources within the United States), the capacity ol 
the recipient country to repay the loan at a reasonable rate of inter 
est,^^^ and the efforts made by recipient nations to repatriate capital 
invested iji other countries by their own citizens. 'I'he provisions of 
sections 201(d), 202(b), 2()2(c), and 204 shall be applicable to such 
loans, and they shall be made only upon a finding of reasonable pros 
pects of repayment. 

(c) The authority of section 014(0) may not lx» used lo waive the re- 
(piirements of this title with resi)ect to funds made available for this 
title which are recjuired to be used for loans payable as to principal and 
interest in United States dollai-s. and the authority of section filO inay 
be used to transfer such funds only to funds made available for title 1 
of chapter 2 of part 1. 

(d) In order to carry out the policies of this Act and the purpose of 



nur] 
ly c 



this title, the President shall, when recjuested by a friendly country 
and when appropriate, assist in fostering measures of agrarian reform, 
including colonization and redistribution of land, with a view to insur- 
ing a wider and more equitable distribution of the ownership of land. 

(e) The President shall not allocate, leserve, earmark, commit, or 
otherwise set aside, funds aggregating in excess of $100,000 for use in 
any country under this title unless (1) an application for such funds 
has been received for use in such country together with sufficient in- 
formation and assurances to indicate reasonably that the funds will be 
used in an economically ^^- and technically sound manner, or (2) the 
President determines with respect to each such allocation, reservation, 
earmarking, commitment, or set -aside that it is in the national interest 
to use such funds pui-suant to multilateral plans. 

(f) In furnishing assistance under this title, consistently with and 
for tne purposes of section 601(b) (4) of this Act, the agency primarily 
responsible for administering part I ^^^ or any other departments and 
agencies desigiiated by the President shall provide such assistance as 
may be determined by the President to be necessary from time to time 
in order to make effective the effoils of the Commerce Committee for 
the Alliance for Progress, established under the Department of 
Commerce. 

(g)i94 jj^ order to carry out the policies of this Act, the President 
shall, when appropriate, assist in promoting the organization, imple- 
mentation, and grow^th of the cooperative movement in Latin America 
as a fundamental measure toward the strengthening of democratic in- 
stitutions and practices and economic and social development under 
the AHian.'p for Piogress. 

(h)^^5 Loans may be made under authority of this title only for 
social and economic development projects and programs which are 

1^1 The words to this rtoint. beginning with "including private sources" were inserted 
by Sec. 106(a) (1) of the FAAct of 1963. 

i»2 Sec. 106(a)(2) of the FAAct of 1963 substituted "economically" for "economical". 

1" Sec. 106(a)(3) of the FAAct of 1963 substituted the words "agency primarily 
responsible for adniiuisterlne part I" for the words "Ajreucy for Internatlonai Develop 
ment*" 

1** Subsection (g) was added by Sec. 106(a) (4) of the FAAct of 1963. 

195 Subsection (h) was added by Sec. 105(a)(2) of the FAAct of 1966. Sec. 106 of the 
FA Appropriation Act. 1978, prohibits the use of funds contained in Title I of that Act 
to carry out the provisions of sections 209(d) and 251(h) of this Act. 



67 

fonsistciit with tlio fiiKlin^s and reconmiendations of tlio Inter- Anieri- 
ciiJi Coinniittce for the Alliance for Progress in its annual revie\y of 
national development activities. Whenever the President determines 
that the purposes of this title would be better served thereby, he may 
make a\ ailable. in addition to any other funds available for such pur- 
poses. Oil iuch terms and coriditions as he determines, not to exceed 15 
per centum of the funds made available for this title to the Inter- Amer- 
ican Dcvelopmeiit Hank, oi- to any of the institutions named in section 
205 (other than the Asian Development Bank),^'^*^ for use in Latin 
America ^^' pursuant to the laws governing United States participation 
m tlivi said liaiik or in such institutions and the governing statutes 
thereof and without regard to section '201 or any other recjuirements 
of this or any other Act. 

Sec. 252.1^* Authorization. — (a)^'^^ There is authorized to be appro- 
priated to the PiesideJit for the purp(;ses of this title, in addition to 
other funds available for such purposes, for the fiscal year 107'2, $295,- 
000,000,200 and for the fiscal year 1973, $295,000,000,-oi which amounts 
are authorized to lemain a\ ailable until expended, and which amounts, 
except for not to exceed $88,500,000 ^^~ for each such fiscal year, shall 
be available only for loans payable as to principal and interest in 
United States dollai-s. In ordei- to effectuate the purposes and provi- 
sions of sections 102, 251, 601, and 602 of this Act, not less than 50 per 
centum of the loan funds appropriated pursuant to this section for any 
fiscal year shall be available for loans made to encourage economic de- 
velopment through private enterprise. 

^jj^203 There are authorized to be appropriated to the President for 
the fiscal year 1974, $934,000, and for the fiscal year 1975, $934,000,20* 
for grants to the National Association of the Partnei*s of the Alliance, 
Inc., in accordance with the purposes of this title. 

Sec 253.205 Fiscal Provisions. — All receipts in United States 
dollai-s from loans made under this title and from loans made for the 
benefit of countries and areas of Latin America under title I of chap- 

i« The parenthetical phrase was added by Sec. 106(a) (1) of the FAAct of 1967. 

'^ The words "in Latin America" were added by Sec. 106(a)(2) of the FAAct of 1967. 

"8 22 use § 2212. Sec. 252 was added by Sec. 106 of the FA.Act o 1962. 

i» Subsection designation "(a)" was added by Sec. 106(b)(4) of the FAAct of 1967. 
Subsection (a) was amended by Sec. 106 of the FAAct of 1969. It formerly read as fol- 
lows : "(a) There i.s hereby authorized to be appropriated to the President for the pur- 
poses of this title, in addition to other funds available for such purposes, for the fiscal 
year 1969, $420,000,000, which is authorized to remain available until expended and 
which, except for not to exceed $90,000,000, shall be available only for loans payable as 
to principal and interest in United States dollars. In order to effectuate the purposes 
and provisions of sections 102, 251, 601, and 602 of this Act, not less than 50 per centum 
of the funds appropriated pursuant to this section for the fiscal year ending June 30, 
1969, shall be available for loans made to encourage economic development through private 
enterprise." 

200 FA Appropriation Act, 1972 ; "Alliance for Progress, technical assistance : $80,000,- 
000: Provided, That no part of this appropriation shall be used to initiate any project 
or activity which has not been justified to the Congress. Alliance for Progress develop- 
ment loans : $150,000,000. together with such amounts as are provided for under sec- 
tion 20.3, all such amounts to remain available until expended." 

2«i The words "for the fiscal year 1972, $295,000 000, and for the fiscal year 1978, 
$295,000,000" were substituted in lieu of "for the fiscal year 1970, $428,250,000, and 
for the fiscal year 1971, $428,250,000" by Sec. 105 ( 1 ) of the FAAct of 1971. 

»3Sec. 105(2) of the FAAct of 1971 substituted "$88,500,000" in lien of "$90,750,000" 

*» Subsection (b) was added by Sec. 106(b)(4) of the FAAct of 1967. It was amended 
by Sec. 7of the FAAct of 3 973 and formerly read as follows : "(b) There is hereby author- 
ized to be appropriated to the President for the fiscal year 1969, $350,000 for grants to 
carry out programs and activities of the Partners of the Alliance in accordance with the 
purpose of this title." 

^* FA Appropriations Act, 1975 : "For necessary expenses to carry out the provisions of 
section 106. $37,000,000 of which not more than $500,000 shall be available for the Na- 
tional Association of the Partners of the Alliance. Inc. • * ♦" 

=« 22 use § 2213. Sec. 253 was added by Sec. 106 of the FAAct of 1962. 



20-818 O - 78 



58 

ter 2 of part I of this Act, iiotwithstandin<j section 203, shall be avail- 
able for use for loans payable as to i>rincipal and intei*est in United 
States dollars in furtherance of the purposes of this title.-^^ All receipts 
in forei«>n cuncncies from loans made under this title or for noiundi- 
tary assistance i)Uiposes under the Mutual Security Act of 1954, as 
amended, or any xVct lepealed thereby, shall be avadable, in addition 
to other funils available for such pur|)oses, for loans on such terms and 
conditions as the President may si)ecify to carry out the purposes of 
subsection (<;) of section 251 of this title, and the I'resident may. not- 
withstandinjjj the provisions of this or any other Act, reserve such cur- 
rencies in such amounts (not to e.xced $25,000 ,000) as he shall deter- 
mine to be necessary to provide foi' the pro^rrams authorized by said 
subsection (g).''^ Such receipts and other funds made available under 
this title for use for the purposes of this title shall remain available 
until expended. 

Title VII— Evaluation of Programs "^ 

Sec. 261.^^® The President may appoint a committee to review and 
evaluate the economic development program under this Act, and to 
report to the President and to the Congiess its findings. 

Title VIII— Southeast Asia Multilateral and Regional Programs °° 

Sec. 271."^ General Provisions. — The acceleration of social and 
economic progress in southeast Asia is important to the achievement of 
the United States foreign policy objectives of peace and stability in 
that area. It is the sense of Congress that this objective would be served 
by an expanded effort by the countries of southeast Asia and other in- 
tei-ested countries in cooperative programs for social and economic de- 
velopment of the region, employing both multilateral and bilateral 
channels of assistance. 

Sec. 272."2 Special Provisions. — In providing; assistance to further 
the purposes of this title the President shall take into account: 

(1) initiatives in the field of social and economic development 
by Asian peoples and institutions; 

{2) regional economic cooperation and integration in south- 
east Asia ; 

(3) the extent of participation by other potential donor 
countries ; 

(4) the degree of peaceful cooperation among the countries of 
southeast Asia toward the solution of conunon problems; and 

(5) the ability of multilateral institutions or other administer- 
ing authorities to carry out projects and programs effectively, 
efficiently, and economicaliy.^^^ 

2o« See appropriation for Alliance for Progress development loans in Sec. 117 of the FA 
Appropriation Act of 1S64, box note pae 216. 

^ This sentence was added by Sec. 106(c) of the FA Act of 1963. 

«» Title VII was added by Sec. 107 of the FAAct of 1963. 

2« :^2 use § 2161. 

210 Title VIII was added by Sec. 106 of the FAAct of 1966. 

«i 22 use § 2217. 

212 22 use § 2217a. 

213 Sec. 273 was struck out by Sec. 107 of the FAAct of 1967. It read as follows : 

"Sec. 273. Authorization. — The President is authorized to utilize not to exceed 
$10,000,000 of the funds otherwise available to carry out the provisions of part I of this 
Act (other than title VI of this chapter) to furnish assistance under this title on such 
terms and conditions as he may determine, in order to promite social and economic devel- 
opment and stability in southeast Asia." 



I 



59 

Title IX— Utilization of Democratic Institutions in Development '^^ 

Sec. 281.^^^ (a) 2^^ In carrying out programs authorized in this 
chaptci, ciiiphasis sliuli be placed on assuring iiiaxiiiiuni participation 
111 the tasii of economic development on the part of the people of the 
developing countries, through the encouragement of democratic pri- 
vate and local go\ ermnental institutions. 

(b)2^^ In order to carry out the purposes of this title, programs 
under this chapter shall — 

(1) lecognize the diHering needs, desires, and capacities of the 
people of the respective developing countries and areas; 

(2) use the intellectual resources of such countries and areas 
in conjunction with assistance provided under this Act so as to 
encourage the development of indigenous institutions that meet 
their particular requirements for sustained economic and social 
progress ; and 

(3) support civic education and training in skills required for 
effective |)articipation in governmental and political processes 
essential to self-government. 

(c)2^^ In the allocation of funds for research under this chapter, 
emphasis shall be given to research designed to examine the political, 
social, and related obstacles to development in countries receiving as- 
sistance under part 1 of this Act. In particular, emphasis should be 
given to research designed to increase understanding of the ways in 
which development assistance can support democratic, social and 
political trends in recipient countries.^^' 

(d)-^^ Emphasis shall also be given to the evaluation of relevant 
past and current programs under part I of this Act and to applying 
this expeiience so as to strengthen their effectiveness in implementing 
the objectives of this title. 

(e)2^^ In order to carry out the purposes of this title, the agency 
primarily responsible for administering part 1 of this Act, shall 
develop systematic programs of inservice training to familiarize its 
personnel with the objectives of this title and to increase their knowl- 
edge of tne political and social aspects of development. In addition to 
other funds available for such purposes, not to exceed 1 per centum 
of the funds authorized to be appropriated for grant assistance under 
this chapter may be used for carrying out the objectives of this sub- 
section. 

Title X— Programs Relating to Population Growth ^^ 

Sec. 291.220 General Provisions.— (a) It is the sense of the Con- 
gress that, while every nation is and should be free to determine its 
own policies and procedures with respect to problems of population 
growth and family planning within its own boundaries, nevertheless, 
voluntary family planning programs to provide individual couples 
with the knowledge and medical facilities to plan their family size 

«* Title IX was added by Sec. 106 of the FAAct of 1966. 
213 22 use § 2218. 
of the FAAct of 1967. 

2 6 Su'sertlnn desicnat'on "^aV and siihsA^^tions (h) . (c) and (d) were added by Sec. 108. 
21' The last sentence was added by Sec. 106(a) of the FAAct of 1968. 
«« Subsection (e) was added bv Sec. 106(b) of the FAAct of 1968. 
«» Title X was added by Sec. 109 of the FAAct of 1967. 
» 22 use § 2219. 



60 

in accoidancc with their own moral convictions and the latest medical 
information, can make a substantial contribution to improve health, 
family stability, greater individual opportunity, economic develop- 
ment, a sulliciency of food, and a higher standard of living. 

(b) lo cai ly out the intent of Congress as expressed in subsection 
(a), the President is authorized to provide assistance for programs 
relating to population growth in friendly countries and areas, on such 
terms and conditions as he shall determine, to foreign governments, 
the United Nations, its specialized agencies, and other mternational 
organizations and programs, United States and foreign nonpiotit or- 
ganizations, universities, hospitals, accredited health mstitutions, and 
voluntary health or other qualihed organizations. 

^^c) in carrying out programs authorized in this title, the 
President shall establish reasonable procedures to insure, when- 
ever family-planning assistance from the United States is involved, 
that no individual will be coerced to practice methods of family 
planning inconsistent with his or her moral, philosophical, or re- 
ligious beliefs. 

(d) As used in this title, the term "programs relating to population 
growth" includes but is not limited to demographic studies, medical, 
psychological, and sociological research and voluntary family plan- 
ning programs, including personnel training, the construction and 
staffing of clinics and rural health centers, specialized training of 
doctoi-s and paramedical personnel, the manufacture of medical sup- 
plies, and the dissemination of family-plamiing information, and 
provision of nuHlical assistance and supplies. 

Sec. 292."^ Authorization. — Of the funds provided to carry out 
the provisions of part 1 of this Act for the fiscal year 1974, 5t^l25,- 
000,000 and for the fiscal year 1975, $150,000,000 "2 shall be available 
in each such fiscal year only to carry out the purposes of this title, 
and, notwithstanding any other provisions of this Act, funds used 
for such purposes may be used on a loan or grant basis. 

Title XI— Food Production Targets and Reports ^ 

Sec. 295."* Food Production Targets and Reports. — In making 
his reconmiendation to the Congress for programs for the fiscal year 
1969 and each fiscal year thereafter, wherever appropriate, the Presi- 
dent shall, for each country receiving assistance under this Act which 
he finds has a substantial food deficit, include — 

(1) descriptions of proposed programs, if any, in the areas 
of food production, storage, and distribution, and voluntary 
family planning; 

(2) information on achievement targets in food production, 
storage, and distribution, and their relationship to expected 
changes in total population ; and 

221 22 use § 2219a. Sec. 106 of the FAAct of 1971 amended this section, which formerly 
read as follows : "Sec. 292. Authorization. — Of the funds provided to carry out the pro- 
visions of part I of this Act for the fiscal year 1970, $75,000,000, and for the fiscal year 
1971. $100,000,000 shall be available only to carry out the purposes of this title and. 
notwithstanding any other provision of this Act, funds used for such purposes may be used 
on a loan or grant basis." 

FA Appropriations Act. 1972 : $125,000,000. 

222 Sec. 4(2) of the FAAct of 1974 substituted "$150,000,000" in lieu of "$130,000,000". 

223 Title XI was added by Sec. 19 of the FAAct of 1967. 
22* 22 use § 2220. 



61 

(3) a detailed report on progress with respect to food produc- 
tion, storage, and distribution, and the relationship of this pro- 
giess to population. 

Title XII— Famine Prevention and Freedom From Hunger^ 

Sec. 296."^ General Provisions. — (a) The Congress declares that, 
in order to prevent famine and establish freedom from hunger, the 
United States should strengthen the capacities of the United States 
land-grant and other eligible universities in program-related agri- 
cultural institutional development and research, consistent with sec- 
tions 103 and 103A, should improve their participation in the United 
States Government's international efforts to apply more effective agri- 
cultural sciences to the goal of increasing world food production, and 
in general should provide increased and longer term support to the 
application of science to solving food and nutrition problems of the 
developing countries. 

The Congress so declares because it finds — 

(1 ) that the establishment, endowment, and continuing support 
of land-grant universities in the United States by Federal, State, 
and county governments has led to agricultural progress in this 
country ; 

(2) that land-grant and other universities in the United 
States have demonstrated over many years their ability to coop- 
erate with foreign agricultural institutions in expanding indig- 
enous food production for both domestic and international 
markets ; 

(3) that, in a world of growing population with rising expec- 
tations, increased food production and improved distribution, 
storage, and marketing in the developing countries is necessary 
not only to prevent hunger but to build the economic base for 
growth, and moreover, that the greatest potential for increasing 
world food supplies is in the developing countries where the 
gap between food need and food supply is the greatest and cur- 
rent yields are lowest ; 

(4) that increasing and making more secure the supply of food 
is of greatest benefit to the poorest majority in the developing 
world ; 

(5) that research, teaching, and extension activities, and appro- 
priate institutional development therefor are prime factors in 
mcreasing agricultural production abroad (as well as in the 
United States) and in improving food distribution, storage, and 
marketing; 

(6) moreover, that agricultural research abroad has in the 
past and will continue in the future to provide benefits for agri- 
culture in the United States and that increasing the availability 
of food of higher nutritional quality is of benefit to all : and 

(7) that universities need a dependable source of Federal 
funding, as well as other financing, in order to expand, or in some 
cases to continue, their efforts to assist in increasing agricultural 
production in developing countries. 

22^22 use 2220a. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Title XII and 
new Sec. 296. 



62 

(b) Accordin<2:ly, the Congress declares that, in order to prevent 
famine and establish freedom from hunger, various components must 
be brought together in order to increase world food production, 
including — 

(1) strengthening the capabilities of universities to assist in 
increasing agricultural production in developing countries; 

(2) institution-building programs for development of na- 
tional and regional agricultural research and extension capacities 
in developing countries which need assistance ; 

(3) international agricultural research centers: 

(4) contract researcli ; and 

(5) research program grants. 

(c) The United States should— 

(1) effectively involve the United States land-grant and other 
eligible universities more extensively in eacli component; 

(2) provide mechanisms for the universities to participate 
and advise in the planning, development, implementation, and 
administration of eacli component; and 

(3) assist such universities in cooperative joint efforts with — 

(A) agricultural institutions in developing nations, and 

(B) regional and international agricultural research 
centers, 

directed to strengthening their joint and respective capabilities 
and to engage them more effectively in research, teaching, and 
extension activities for solving problems in food production, dis- 
tribution, storage, marketing, and consumption in agriculturally 
underdeveloped nations. 

(d) As used in this title, the term "universities'' means those col- 
leges or universities in each State, territory, or possession of the United 
States, or the District of Columbia, now receiving, or which may 
hereafter receive, benefits under the Act of July 2, 1862 (known as 
the First Morrill Act), or the Act of August 30, 1890 (known as 
the Second Morrill Act), which are commonly known as "land-grant" 
universities; institutions now designated or which may hereafter be 
designated as sea-grant colleges under the Act of October 15, 1966 
(known as the National Sea Grant College and Program Act), which 
are commonly known as sea-grant colleges; and other United States 
colleges and universities which — 

(1) have demonstrable capacity in teaching, research, and ex- 
tension activities in the agricultural sciences; and 

(2) can contribute effectively to the attainment of the objective 
of this title. 

(e) As used in this title, the term "Administrator' means the 
Administrator of the Agency for International Development. 

(f ) As used in this title, the term "agriculture'' shall be considered 
to include aquaculture and fisheries. 

(g) As used in this title, the term "farmers" shall be considered to 
include fishermen and other persons emplo^^ed in cultivating and har- 
vesting food resources from salt and fresh waters. 

Sec. 297.^-'^' General Authority.— (a) To carry out the purposes of 
this title, the President is authorized to provide assistance on such 
terms and conditions as he shall determine — 



226 22 use 2220b. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 29^ 



63 

(1) to strengtlien the capabilities of universities in teaching, 
research, and extension work to enable them to implement current 
programs authorized by paragraphs (2), (8), (4), and (5) of this 
subsection, and those proposed in the report required by section 
300 of this title ; 

(2) to build and strengthen the institutional capacity and hu 
man resources skills of agriculturally developing countries so that 
these countries may participate more fully in the international 
agricultural problem-solving elfort and to introduce and adapt 
new solutions to local circumstances; 

(3) to provide program support for long-term collaborative 
univei'sity research on food production, distribution, storage, mar- 
keting, and consumption ; 

(4) to involve universities more fully in the international net- 
work of agricultural science, inchiding the international research 
centei-s, the activities of international organizations such as the 
United Xations Development Program and the Food and Agri- 
culture Organization, and the institutions of agriculturally de- 
veloping nations; and 

(5) to provide program support for international agricultural 
research centers, to provide support for research projects identi- 
fied for specific problem-solving needs, and to develop and 
strengthen national research systems in the developing countries. 

(b) Programs under this title shall be carried out so as to— 

(1) utilize and strengthen the capabilities of universities in — 

(A) developing capacity in the cooperating nation for class- 
room teaching in agriculture, plant and animal sciences, hu- 
man nutrition, and vocational and domestic arts and other 
relevant fields appropriate to local needs; 

(B) agricultural research to be conducted in the cooperat- 
ing nations, at international agricultural research centers, or 
in the United States; 

(C) the planning, initiation, and development of extension 
services through which information concerning agriculture 
and related subjects will be made available directly to farmers 
and farm families in the agriculturally developing nations by 
means of education and demonstration : or 

(D) the exchange of educators, scientists, and students for 
the purpose of assisting in successful development in the co- 
operating nations; 

(2) take into account the value to the United States agriculture 
of such programs, integrating to the extent practicable the pro- 
grams and financing authorized under this title with those sup- 
ported by other Federal or State resources so as to maximize the 
contribution to the development of agriculture in the United States 
and in agriculturally developing nations; and 

( 3 ) whenever practicable, build on existing programs and insti- 
tutions including those of the universities and the United States 
Department of Agriculture and the I'^nited States Department of 
Commerce. 

(c) To the maximum extent practicable, activities under this section 
shall (1) be designed to achieve the most effective interrelationship 
among the teaching of agricultural sciences, research, and extension 



64 

work, (2) focus primarily on the needs of agricultural producers, (3) 
be adapted to local circumstances, and (4) be carried out within the 
developing countries. 

(d) The i*resident shall exercise his authority mider this section 
through the Administrator. 

Sec. 298.^"' Board for International Food and Agricultural De- 
velopment. — (a) To assist in the aJniinistration of tlie programs 
authorized by this title, the President shall establish a permanent 
Board for International Food and Agricultural Development (here- 
after in this title referred to as the *'Board") consisting of seven mem- 
bers, not less than four to be selected from the universities. Terms oi 
members shall be set by the President at the time of appointment. 
Members of the Board shall be entitled to such reimbursement for 
expenses incurred in the performance of their duties (including per 
diem in lieu of subsistence while away from their homes or regular 
place of business) as the President deems appropriate. 

(b) The Board's general areas of responsibility shall include, but 
not be limited to — 

(1) participating in the planning, development, and imple- 
mentation of, 

(2) initiating recommendations for, and 

(3) monitoring of, 

the activities described in section 21)7 of this title. 

(c) The Board's duties shall include, but not necessarily be limited 
to— 

(1) participating in the formulation of basic policy, proce- 
dures, and criteria for project proposal review, selection, and 
monitoring ; 

(2) developing and keeping current a roster of univei-sities — 

(A) interested in exploring their potential for collabora- 
tive relationships with agricultural institutions, and with 
scientists working on significant programs designed to in- 
crease food production in developing countries, 

(B) having capacity in the agricultural sciences, 

(C) able to maintain an appropriate balance of teaching, 
research, and extension functions, 

(D) having capacity, experience, and commitment with 
respect to international agricultural eil'orts, and 

(E) able to contribute to solving the problems addressed 
by this title ; 

(3) recommending which developing nations could benefit from 
progiams carried out under this title, and identifying those na- 
tions which have an interest hi establishing oi- devolopiiig agri 
cultural institutions which engage in teaching, research, or exten- 
sion activities; 

(4) reviewing and evaluating memorandums of undei'standing 
or other documents that detail the terms and conditions between 
the Administrator and universities participating in programs 
under this title ; 

(5) reviewing and evaluating agreements and activities author- 
ized by this title and undertaken by universities to assure com 
pliance with the purposes of this title; 

2-'7 22 use 2220c. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec, 298. 



65 

(6) recommending to the Administrator the apportionment of 
funds under section 297 of this title; and 

(7) assessing the impact of programs carried out under this 
title in solving agricultural problems in the developing nations. 

(d) Tlie President may authorize the Board to create such sul)ordi- 
(late units as may be necessary for the performance of its duties, includ- 
ing but not limited to the following : 

(1) a Joint Research Committee to participate in the adminis- 
tration and development of the collaborative activities described 
in section 297(a) (3) of this title; and 

(2) a Joint Committee on Country Programs which shall assist 
in the implementation of the bilateral activities described in sec- 
tions 297(a)(2), 297(a)(4), and 297(a)(5). 

(e) In addition to any other functions assigned to and agreed to by 
the Board, the Board shall be consulted in the preparation of the 
annual report required by section 800 of this title and on other agricul- 
tural development activities related to programs under this title. 

Sec. 299.22^ Authorization. — (a) The President is authorized to 
use any of the funds hereafter made available under section 103 of this 
Act to carry out the purposes of this title. Funds made available for 
such purposes may be used without regard to the provisions of sec- 
tions 110(b), 211(a), and 211 (d) of this Act. 

(b) Foreign currencies owned by the United States and determined 
by the Secretary of the Treasury to be excess to the needs of the 
United States shall be used to the maximum extent possible in lieu of 
dollars in carrying out the provisions of this title. 

(c) Assistance authorized under this title shall be in addition to any 
allotments or grants that may be made under other authorizations. 

(d) Universities may accept and expend funds from other sources, 
public and private, in order to carry out the purposes of this title. All 
•?uch funds, both prospective and inhand, shall be periodically dis- 
closed to the Administrator as he shall by regulation require, but no 
less ofton than in an annual report. 

Sec. 300."9 Annual Report.— The President shall transmit to the 
Conffress. not later than April 1 of each year, a report detailing the 
activities carried out pursuant to this title during the preceding fiscal 
year and containing a projection of programs and activities to be 
conducted during the subsequent five fiscal years. Each report shall 
contain a summary of the activities of the Board established pursuant 
to section 298 of this title and may include the separate views of the 
Board with respect to any aspect of the programs conducted or pro- 
posed to be conducted under this title. 

Chapter 3 — International Organizations and Programs 

Sec. 301.^^° General Authority. — (a) AVhen he determines it to be 
in the national interest, the President is authorized to make volun- 
tary contributions on a grant basis to international organizations and 
to programs administered by such organizations, and in the case of 
the Indus Basin Development Fund administered by the Interna- 
tional Bank for Reconstruction and Development to make grants 

^•i«22 TiSC 2220d. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 299. 

229 22 use 2220e. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 300. 

230 22 U.S.C. 2221. 



66 

and loans payable as to principal and interest in United States dol- 
lars and subject to the provisions of section 201 (d),"^ on such terms 
and conditions as he may determine, in order to further the purposes 
of this part. 

(b) Contributions to the United Nations Development Program "^ 
for the calendar years succeeding 1961 may not exceed forty per 
centum of the total amount contributed for such purpose (including 
assessed and audited local costs) for each such year. The President 
shall seek to assure that no contribution to the United Nations Develop- 
ment Program authorized by this Act shall be used for projects for 
economic or technical assistance to the Government of Cuba, so long 
as Cuba is governed by the Castro regime."^ 

(c)^^^ No contributions by the United States shall be made to the 
United Nations Relief and Works Agency for Palestine Refugees in 
the Near East except on the condition that the United Nations Relief 
and Works Agency take all possible measures to assure that no part 
of the United States contribution shall be used to furnish assistance to 
any refugee who is receiving military training as a member of the so- 
called Palestine Liberation Army or any other guerrilla type organiza- 
tion or who has engaged in any act of terrorism. 

(d)"* In any case in which a fund established solely by United 
States contributions under this or any other Act is administered by an 
international organization under the terms of an agreement between 
the United States and such international organization, such agreement 
shall provide that the Comptroller General of the United States shall 
conduct such audits as are necessary to assure that such fund is ad- 
ministered in accordance with such agreement. The President shall 
undertake to modify any existing agreement entered into before the 
date of enactment of this subsection to conform to the requirements of 
the preceding sentence. 

^gj235 f^i>^ jj^ ^j^g (>g^^ Qf j^Q United Nations and its affiliated orga- 
nizations, including the International Atomic Energy Agency, the 
President shall, acting through the United States representative to 
such organizations, propose and actively seek the establishment by the 
governing authorities of such organizations a single professionally 
qualified group of appropriate size for the purpose of providing an 
independent and continuous program of selective examinations, re- 
view, and evaluation of the programs and activities of such organiza- 
tions. Such proposal shall provide that such group shall be established 

231 The words to this point, beginning with ", and in the case of the Indians", were added 
by Sec. 107(a) of the FAAct of 1960. 

232 Sec. 107(b) of the FAAct of 1966 substituted "United Nations Development Pro- 
pram" in lieu of "United Nations Expanded Program of Technical Assistance and the 
United Nations Special Fund", and also added the last sentence. 

233 Subsection (c) was amended by Sec. 108(a) of the FAAct of 1969. It formerly read 
as follows "(c) In determining whether or not to continue furnishing assistance for 
Palestine refugees in the Near East through contributions to the United Nations Relief 
and Works agency for Palestine Refugees in the Near East, the President shall take 
Into account (1) whether Israel and the Arab host governments are taking steps toward 
the resettlement and repatriation of such refugees, and (2) the extent and success of 
efforts by the Agency and the Arab host governments to rectify the Palestine refugee 
relief rolls. Contributions by the United States for the fiscal year 1967 shall not exceed 
$13,300,000. No contributions under this subsection shall be made except on the condi- 
tion that the United Nations Relief and Works Agency take all possible measures to 
assure that no part of the United States contribution shall be used to furnish assist- 
ance to any refugee who is receiving military training as a member of the so-called Palestine 
Liberation Army." 

23* Subsection (d) was added by Sec. 110(a) of the FAAct of 1967. 
«»5 Subsection (e) was added by Sec. 9(1) of the FAAct of 1973. 



67 

in accordance with such terms of reference as such governing authority 
may prescribe and that the reports of such group on each examination, 
review, and evaluation shall be submitted directly to such governing 
authority for transmittal to the representative of each individual mem- 
ber nation. Such proposal shall further include a statement of auditing 
and reporting standards, as prepared by the Comptroller General of 
the United States, for the consideration of the governing authority 
of the international organization concerned to assist in formulating 
terms of reference for such review and evaluation group. 

(2) In the case of the International Bank for Reconstruction and 
Development and the Asian Development Bank, the President shall, 
acting through the United States representative to such organizations, 
propose and actively seek the establishment by the governing authori- 
ties of such organizations professionally qualified groups of ap- 
propriate size for the purpose of providing an independent and con- 
tinuous program of selective examination, review, and evaluation of 
the programs and activities of such organizations. Such proposal shall 
provide that such groups shall be established in accordance with such 
terms of reference as such governing authorities may prescribe, and 
that the reports of such groups on each examination, review, and 
evaluation shall be submitted directly to such governing authority for 
transmittal to the representative of each individual member nation. 
Such proposal shall further include a statement of auditing and re- 
porting standards, as prepared by the Comptroller General of the 
United States, for the consideration of the governing authority of the 
international organization concerned to assist in formulating terms of 
reference for such review and evaluation groups. 

(3) Reports received by the United States representatives to these 
international organizations under this subsection and related informa- 
tion on actions taken as a result of recommendations made therein shall 
be submitted promptly to the Presiaent for transmittal to the Congress 
and to the Comptroller General. The Comptroller General shall peri- 
odically review such reports and related information and shall report 
simultaneously to the Congress and to the President any suggestions 
the Comptroller General may deem appropriate concerning auditing 
and reporting standards followed by such groups, the recommenda- 
tions made and actions taken as a result of such recommendations.^^*^ 

(f) "^ The President is hereby authorized to permit United States 
participation in the International Fertilizer Development Center and 
is authorized to use any of the funds made available under this part 
for the purpose of furnishing assistance to the Center on such terms 
and conditions as he mav determine. 

Sec. 302.-"« Authorization.— (a) (1) "9 There is authorized to be ap- 
propriated to the President for grants to carry out the purposes of this 

** For other reports required to be submitted to Congress, see Reports to Congress. Index. 

23T Subsection (f) was added by Sec. 313(c) of Public Law 94-161 (89 Stat. 849). 

238 22 use § 2222. Sec. 107(d) of the FAAct of 1966 amended Sec. 302, which formerly 
read as follows : 

"Sec. 302. Authorization. — There is hereby authorized to be appropriated to the Presi- 
dent for use. in addition to funds available under any other Act for such purposes, for the 
fiscal year 1966 to carry out the purposes of this chapter not to exceed $144,755,000. None 
of section 301, $187,000,000: Provided, That not more than $20,000,000 shall be available 
organization or to any foreign government or agency thereof to pay the costs of develop- 
ing or operating any volunteer program of such organization, government, or agency relat- 
ing to the selection, training, and programing of volunteer manpower. 

2» Paragraph "(1)" designation was added by Sec. 313(a)(1)(B) of Public Law 94-161 
(89 Stat. 849). 



68 

chapter, in addition to funds available under any other Acts for such 
purposes, for the fiscal year 1977, $219,900,000 and for the fiscal year 
1978, $252,000,000.24« Of such amounts, not to exceed $250,000 during 
the fiscal year 1976 shall be available for contribution to the Namibia 
Institute.^''^ Of the funds authorized to be appropriated under this sub- 
section for the fiscal year 1978, not to exceed $42,500,000 shall be avail- 
able for voluntary contributions to the United Nations Relief and 
Works Agency for Palestine Refugees.^^^ 

^2)243 'YiiQ Congress reaffirms its support for the work of the Inter- 
American Commission on Human Rights. To permit such Commission 
to better fulfill its function of insuring observance and respect for 
human rights within this hemisphere, not less than $357,000 of the 
amount appropriated for fiscal year 1976 and $358,000 of the amount 
appropriated for fiscal year 1977, for contributions to the Organiza- 
tion of American States, shall be used only for budgetary support for 
the Inter- American Commission on Human Rights. 

(b) (1)^''^ There is authorized to be appropriated to the President 
for loans for Indus Basin Development to carry out the purposes of 
this section, in addition to funds available under this or any other Act 
for such purposes, for use beginning in the fiscal year 1969, 
$61,220,000.^^^ Such amounts are authorized to remain available until 
expended. 

^2)244 xhere is authorized to be appropriated to the President for 
grants for Indus Basin Development, in addition to any other funds 
available for such purposes, for use in the fiscal year 1974, $14,500,- 
000."« and for use in the fiscal year 1975, $14,500,000,^" and for use 

2*0 The authorization for fiscal jear 1978 was added by Sec. 118(a) of the International 
Development and Food Assistance Act of 1977 (91 Stat. 540). Authorizations under sec- 
tion 302 durinfr the recent years included the following: FY 1974 — $127,822,000; FY 
1975 — $105,000,000; FY 1976— $195,500,000. 

FA Appropriations Act, 1978 : 

"International organizations and programs : For necessary expenses to carry out the 
provisions of section 301 of the Foreign Assistance Act of 1961, a amended, and of section 
2 of the United Nations Environment Program Participation Act of 1973, $231,250,000. of 
which amount $500,000 shall be for the Organization of American States Special Cultural 
Account, $500,000 shall be for the Organization of American States Special Development 
Assistance Fund, and $1,500,000 shall be for the Organization of American States Special 
Multilateral P'und : Provirfeff, That not more than $115,000,000 shall be available for the 
United Nations Development Program : Provided further. That no part of any such ap- 
propriation for 'International organizations and programs' may be available to make any 
contribution of the United States to the United Nations University, not more than $25.- 
000.000 shall be available for the United Nations Children's Fund, not more than $1,000,000 
shall be available for the United Nations Educational and Training Program for Southern 
Africa, not morp than JSaOO.OOO shall be available for the United Nations Namibia Institute. 
not more than $3,000,000 shall be available for the United Nations Decade for Women, not 
more than $3,000,000 shall be available for the United Nations Decade for Women, not 
more than $2,000,000 shall be available for the United Nations Capital Development Fund, 
and not more than $5.'600.000 shall be available to strengthen the International Atomic 
Energy Agency's safeguards program out of the total contribution made available to the 
Agency." 

2" The words to this point commencing with ", and fiscal year 1976, • * *" were 
added bv Sec. 313(a)(1)(A) of Public Law 94-161 (89 Stat. 849). 

2<2 This sentence was added by Sec. 118(a)(3) of the International Development and 
Food Assistance Act of 1977 (91 Stat. 540). 

2" Paragraph (2) was added by Sec. 313(a) (1)(C) of Public Law 94-161 (89 Stat. 849). 

2" Subsection designation "(1)'' and subsection (2) were added by Sec. 108(c) of the 
FAAct of 1969. 

2«Sec. '31'3(a)(2) of Public Law 94-161 (89 Stat. 849) substituted "$61,220,000" In 
lieu of "$51,220,000". 

FA Appropriations Act. 1976 : "Indus Basin Development Fund, loans : For expenses 
authorized by section 302(b) (1) $10,000,000, to remain available until expended : Provided, 
That no other funds appropriated or made available under this Act shall be used for the 
purposes of such section durlnc the current fiscal vear." 

2*«Sec. 9(3) of the FAAct of 1973 substituted "for use in the fiscal year 1974. $14,500,- 
000 and for use in the fiscal year 1975, $14,500,000," in lieu of "for use in the fiscal year 
1972, $15,000,000, and for use in the fiscal year 1973, $15,000,000" 



69 

beginning in the fiscal year 1976, $27,000,000,^^^ which amounts shall 
remain available until expended. The President shall not exercise 
any special authority granted to him under section 610(a) or 614(a) 
of this Act to transfer any amount appropriated under this paragraph 
to, and to consolidate such amount with, any funds made available 
under any other provisions of this Act.^*^ 

(c) None of the funds available to carry out this chapter shall be 
contributed to any international organization or to any foreign govern- 
ment or agency thereof to pay the costs of developing or operating any 
volunteer program of such organization, government, or agency relat- 
ing to the selection, training, and programing of volunteer 
manpower. 

(d)2*® Of the funds made available to carry out this chapter for 
each of the fiscal years 1976 and 1977, $20,000,000 "o shall be available 
in each such fiscal year only for contributions to the United Nations 
Children's Fund.^^i 

(e)252 There is authorized to be appropriated $2,000,000 for the 
fiscal year 1974 and $2,000,000 for the fiscal year 1975,^53 to provide 
added contribution to the United Nations Relief and Works Agency 
for expansion of technical and vocational training of Arab refugees. 

(f)"4 There is authorized to be appropriated to the President, in 
addition to other amounts available for such purposes, $1,000,000 for 
the fiscal year 1972 and $1,000,000 for the fiscal year 1973, in Egyptian 
pounds owned by the United States and determined by the President 
to be excess to the requirements of departments and agencies of the 
United States, for the purpose of providing technical and vocational 
training and other assistance to Arab refugees. Amomits appropriated 
under this subsection are authorized to remain available until 
expended. 

(g^255 Qf ^]^g funds made available to carry out this chapter for fis- 
cal year 1975, in addition to any other such funds to be made available 
for contributions to the International Atomic Energy Agency, not less 
than $500,000 shall be made available to such Agency as technical 
assistance in kind. However, a reasonable amount of funds authorized 

**' The words to this point conimenoinp' with "and for use beginning * * *" were added 
by Sec. 313(a)(3) of Public Law 94-161 (89 Stat. 849). 

FA Anpronriations Act. 1977 : "For necessary expenses to carry out the provisions of 
section 302(b) (2), $15,750,000." 

2««The last sentence was added by Sec. 107(b) (2) of the FAAct of 1971. 

2« Subsection (d). which was added by Sec. 108(b) of the FAAct of 1968, was amended 
by Sec. 9(4) of the FAAct of 1973. It formerly read as follows : 

"(d) There is authorized to be appropriated to the President, for the fiscal year 1969, 
$1,000,000 for contributions to the United Nations Children's Fund during the calendar 
year 1969. Funds made available under this subsection shall be in addition to funds avail- 
able under this or any other Act for such contributions and shall not be taken into account 
in computing the aggregate amount of United States contributions to such fund for the 
calendar year 1969." 

250 Sec. 313(a)(4) of Public Law 94-161 (89 Stat. 849) substituted "1976 and 1977, 
$20,000,000" in lieu of "1974 and 1975, $18,000,000". 

251 In opinion B-180517, dated March 21, 1974, the Comptroller General ruled that the 
515,000.000 earmarked in the FA Appropriation Act, 1974 (Public Law 93-240) Is 
controlling. 

FA Appropriations Act, 1978 appropriated "not more than $25,000,000" for the United 
Nations Children's Fund. 

252 Subsection (e) was added by Sec. 108(d) of the FAAct of 1969. 

253 Sec. 9(5) of the FAAct of 1973 substituted "$2.00.000 for the fiscal year 1974 and 
$2,000,000 for the fiscal year 1975" in lieu of "$1,000,000 for the fiscal 1972 and 
$1,000,000 for the fiscal year 1973". 

FA Appropriation Act. 1974 ; $2,000,000. FA Appropriation Act 1975 included no appro- 
priation under this authorization. 

25* Subsection (f) was added by Sec. 107(d) of the FAAct of 1971. 

255 Subsections (g) and (h) were a,dded by Sec. 9(a) (2) of the FAAct of 1974. 



70 

under this section shall be made available in fiscal year 1975 to 
strengthen international procedures which are designed to prevent the 
unauthorized dissemination or use of nuclear materials. The President 
shall report to the Congress not later than July 1, 1975, concerning 
actions taken by the United States to strengthen the procedures de- 
scribed under the preceding sentence. 

(h)"^ Congress directs that no funds should be obligated or ex- 
pended, directly or indirectly, to support the United Nations Educa- 
tional, Scientific, and Cultural Organization until the President certi- 
fies to the Congress that such Organization (1) has adopted policies 
which are fully consistent with its educational, scientific, and cultural 
objectives, and (2) has taken concrete steps to correct its recent actions 
of a primarily political character. 

(JJ256 jj^ addition to amounts otherwise available under this section 
there are authorized to be appropriated for fiscal year 1976 $1,000,000 
and for fiscal year 1977 $2,000,000 to be available only for the Inter- 
national Atomic Energy Agency to be used for the purpose of 
strengthening safeguards and inspections relating to nuclear fissile fa- 
cilities and materials.2^^ Amounts appropriated under this subsection 
are authorized to remain available until expended. 

Sec. 303.= '^ Indus Basin Development. — In the event that funds 
made available under this Act (other than part II) are used by or 
under the supervision of the International Bank for Reconstruction 
and Development in furtherance of the development of the Indus 
Basin through the program of cooperation among South Asian and 
other coimtries of the free world, which is designed to promote eco- 
nomic growth and political stability in South Asia, such funds may 
be used in accordance with requirements, standards, or procedures 
established by the Bank concerning completion of plans and cost esti- 
mates and determination of feasibility, rather than with requirements, 
standards, or procedures concerning such matters set forth in this or 
other Acts; and such funds may also be used without regard to the 
provisions of section 901(b) of the Merchant Marine Act, 1936, as 
amended (46 U.S.C. 1241 ),2^^ whenever the President determines that 
such provisions cannot be fully satisfied without seriously impeding 
or preventing accomplishment of the purposes of such programs : Pro- 
viaed, That compensating allowances are made in the administration 
of other programs to the same or other areas to which the require- 
ments of said section 901(b) are applicable. 

Sec. 304.260 United Nations Peacekeeping. — It is the sense of the 
Congress that the cause of international order and peace can be en- 
hanced by the establishment, within the United Nations Organization, 
of improved arrangements for standby forces being maintained by 
United Nations members for United Nations peacekeeping purposes 
in accordance with the United Nations Charter. The President is 



25« Subsection (i) was added by Sec. 505 of the International Security Assistance and 
Arms Export Control Act of 1976. 
2" Supplemental Appropriations Act, 1977 (Public Law 95-26: 91 Stat. ©6) : 
"For an additional amount for "International organizations and proerams", $31,000,000 : 
Provided, That of the funds appropriated under this para^aph, $3,000,000 shall be allo- 
cated for a contribution to the International Atomic Energy Agency to strengthen the 
Agency's safeguards program." 

258 22 use 2223. 

259 For text, see page 238. 

2«>22 UST? 2224. Sec. 304 was added by Sec. 110(c) of the FAAct of 1967. 



71 

therefore requested to explore through the United States Representa- 
tive to the United Nations, and in cooperation with the other members 
of the United Nations and the United Nations Secretariat, both the 
means and the prospects of establishing such peacekeeping arrange- 
ments. The President shall submit to the Congress, not later than 
March 31, 1968, a report upon the outcome of his initiatives, together 
with such recommendations as he may deem appropriate. 

Sec. 305.2^^ Integration of Women. — The President is requested to 
instruct each representative of the United States to each international 
organization of which the United States is a member (including but 
not limited to the International Bank for Reconstruction and Develop- 
ment, the Asian Development Bank, the Inter-American Develop- 
ment Bank, the International Monetary Fund, the United Nations, 
and the Organization for Economic Cooperation and Development) 
to carry out their duties with respect to such organizations in such a 
manner as to encourage and promote the integration of women into the 
national economies of member and recipient countries and into pro- 
fessional and policy-making positions within such organizations, 
thereby improving the status of women. The President is further re- 
quested, in making United States contributions to such organizations, 
to take into account the progress, or lack of progress, of such organiza- 
tions in adopting and implementing policies and practices which en- 
courage and promote the integration of women into the national econ- 
omies of member and recipient countries, and into professional and 
policy-making positions w ithin such organizations, in accordance with 
the World Plan of Action of the Decade for Women.^*^^ 

Chapter 4 — Supporting Assistance ^^^ [Repealed— 1972] 

[See Chapter 4 of Part II, page 96.] 

Chapter 5 — Contingency Fund ^^^ 

Sec 451.2«5 Contingency Fund. — (a) There is authorized to be 
appropriated to the President for the fiscal year 1978 not to exceed 
$5,000,000 266 to provide assistance authorized by this part ^^^ for any 
emergency purpose only in accordance with the provisions applicable 
to the furnishing of such assistance. Amounts appropriated under 
this section are authorized to remain available until expended.^^^ 

»i22 use 2225. Sec. 305 was added by Sec. 54 If the FAAct of 1974, which Inserted 
It at the end of Part III. chapter 3. Sec. 313(b) of PubUc Law 94-161 reinserted it at 
the end of Part I, chapter 3. 

-«2This sentence was added by Sec. 118(b) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 540). 

283 Sec. 202(b) of the FAAct of 1971 repealed Chapter 4 of part I. 

2«* Sec. 503(1) of the International Security Assistance and Arms Export Control Act 
of 1976 substituted the words "Contingency Fund" in lieu of "Disaster Relief '. Previously, 
Sec. 2(1) of the Foreign Disaster Assistance Act of 1974 substituted the words "Disaster 
Relief" in lieu of "Contingency Fund". 

2«5 22 use 2261, Sec. 451 was amended by Sec. 28(c) of the FAAct of 1974. It formerly 
read as follows : "SEC. 451. CONTINGENCY FUND — (a) There is authorized to be appro- 
priated to the President for each of the fiscal years 1974 and 1975 not to exceed $30,000,000, 
to provide assistance authorized by this part primarily for disaster relief purposes. In 
accordance with the provisions applicable to the furnishing of such assistance, (b) The 
President shall provide quarterly reports to the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate and the Speaker of the House of Representa- 
tives on the programing and the obligation of funds under subsection (a)." 

28«The authorization for fiscal year 1978 was added by Sec. 2 of the International 
Security Assistance Act of 1977 (91 Stat. 614). 

FA Appropriations Act, 1978 : $5,000,000. 

20T Sec. 503(2) of the International Security Assistance and Arms Export Control Act 
of 1976 struck out the words "or by section 639" which had previously appeared at this 
point. 



72 

(b) The President shall submit quarterly reports to the Committee 
on Foreign Relations and the Committee on Appropriations of the 
Senate and the Speaker of the House of Representatives on the pro- 
graming and obligation of funds under this section. 

(c) No part of this fund shall be used to pay for any gifts to any 
officials of any foreign government made heretofore or liereafter.^^'^ 

Chapter 6— Assistance to Countries Having Agrarian Economies 

Sec. 461. Assistance to Countries Having Agrarian Economies.— 

(a)^^° Wherever the President determines that the economy of any 
counti-y is in major part an agrarian economy, empliasis shall be placed 
on programs which reach the people in such country who are engaged 
in agrarian pursuits or who live m the villages or rural areas in such 
country, including programs which will assist them in the establish- 
ment of indigenous cottage industries, in the improvement of agri- 
cultural methods and techniques, and which will encourage the devel- 
opment of local programs of self-help and nmtual cooperation. In such 
country emphasis siiall be placed also upon programs of community 
development which will promote stable and responsible governmental 
institutions at the local level.^^^ 

(b)^^- In presenting proposals to the Congress for fiscal year 1969 
the President shall include reconunendations for improving and es- 
tablishing agricultural research and training facilities in tropical and 
subtropical regions of Latin America, Africa^ and Asia. These recom- 
mendations shall be developed after consultation with the Department 
of Agriculture, land-grant colleges of agriculture, and other appro- 
priate institutions and organizations, including those in the regions 
concerned. 

Chapter 7 — Joint Commissions on Rural Development ^^ 

Sec. 471.-^^ Joint Commissions on Rural Development. — (a) The 

President is authorized to conclude agreements with less developed 
countries providing for the establishment in such countries of Joint 
Commissions on Rural Development each of which shall be composed 
of one or more citizens of the United States appointed by the Presi- 
dent and one or more citizens of the country in which the Commission 
is established. A majority of the members of each such Commission 
shall be citizens of tiie country in which it is established. Each such 
agreement shall provide for the selection of the members who are 
citizens of the country in which the Commission is established who 
wherever feasible shall be selected in such manner and for sucli terms 



308 The final sentence of subsection (a) was added by Sec. 503(2) of the International 
Security Assistance and Arms Export Control Act of 1976. 

289 Sec. 452, which was added by Sec. 2(2) of the Foreign Disaster Assistance Act of 1974 
(Public Law 93-333) and formerly appeared at this point, was redesignated as Sec. 494 by 
Sec. 101(4) of Public Law 94-161 (89 Stat. 849). 

270 22 use 2271. 

2^ This last sentence was added by Sec. 110 of the FAAct of 1962. 

2^2 Subsection designation "(a)" and subsection (b) were added by Sec. 113 of the FAAct 
of 1967. 

273 Chapter 7 was added by Sec. 110 of the FAAct of 1966. 

«4 22 use § 2281. 



73 

of office as will insure to the maximum extent possible their tenure and 
continuity in office. ; 

(b) A commission established pursuant to an agreement authorized 
by this section shall be authorized to formulate and carry out programs 
for development of rural areas in the country in which it is established, 
which may include such research, training and other activities as may 
be necessary or appropriate for such development. 

(c) Not to exceed 10 per centum of the funds made available pur- 
suant to section 212 shall be available to the President in negotiating 
and carrying out agreements entered into under this section, including 
the financing of appropriate activities of Commissions established pur- 
suant to such agreements. 

(d) The furnishing of assistance under this section shall not be 
construed as an express or implied assumption by the United States 
of any responsibility for making further contributions for such 
purpose. 

(e) Nothing in this chapter shall be construed to restrict the au- 
thority contained in any other chapters of this Act. 

Chapter 8 — International Narcotics Control 2" 

Sec. 481."^ International Narcotics Control.— (a) ^^ It is the sense 
of the Congress that effective international cooperation is neces- 
sary to put an end to the illicit production, smuggling, trafficking in, 
and abuse of dangerous drugs. In order to promote such cooperation, 
the President is authorized to conclude agreements with other coim- 
tries to facilitate control of the production, processing, transportation, 
and distribution of narcotic analgesics, including opium and its deriv- 
atives, other narcotic drugs and psychotropics, and other controlled 
substances as defined in the Comprehensive Drug Ab^se Prevention 
and Control Act of 1970. Notwithstanding any other provision of law, 
the President is authorized to furnish assistance to any country or in- 
ternational organization, on such terms and conditions as he may 

275 Chapter 8 was added by Sec. 109 of the FAAct of 1971. 

2'« 22 use § 2291. See. 481 was added bv Sec. 109 of the FAAct of 1971. Sec. 503 of the 
Foreign Relations Authorization Act of 1972 amended Sec. 481 and added Sec. 482. Sec. 481 
formerly read as follows : 

"It is the sense of the Congress that effective international cooperation is necessary to 
put an end to the illicit production, trafficking in, and abuse of dangerous drugs. In order 
to promote such cooperation, the President is authorized to conclude agreements with other 
countries to facilitate control of the production, processing, transportation, and distribu- 
tion of narcotic analgesics, including opium and its derivatives, other narcotic drugs and 
psychotropics and other controlled substances as defined In the Comprehensive Drug Abuse 
Prevention and Control Act of 1970 (Public Law 91-513). Notwithstanding any other 
provision of law, the President is authorized to furnish assistance to any country or inter- 
national organization, on such terms and conditions as he may determine, for the control of 
the production of, processing of, and traffic in, narcotic and psychotropic drugs. In furnish- 
ing such assistance the President may use any of the funds made available to carry out 
the provisions of this Act. The President shall suspend economic and military assistance 
furnished under this or any other Act, and shall suspend sales under the Foreign Military 
Sales Act aud under title I of the Agriculture Trade Development and Assistance Act 
of 1954 with respect to any country when the President determines that the government 
of such country has failed to take adequate steps to prevent narcotic drugs and other con- 
trolled substances (as defined by the Comprehensive Drug Abuse Prevention and Control 
Act of 1970) produced or processed, in whole or in part, In such country, or transported 
through such country, from being sold illegally within the jurisdiction of such country to 
United States Government personnel or their dependents, or from entering the United 
States unlawfully. Such suspension shall continue until the President determines that the 
eovernment of such country has taken adequate steps to carry out the purposes of this 
chanter." 

Under the FAAct of 1971, funds to implement Sec. 481 were available from any funds 
made available to carry out this Act. 

277 Subsection designation "(a)" and subsection (b) were added by sec. 11(a) of the 
FAAct of 1973, 



20-818 O - 78 



74 

determine, for the control of the production of, processing of, smug- 
gling of, and traffic in, narcotic and psychotropic drugs. The President 
shall suspend economic and military assistance furnished under this or 
any other Act, and shall suspend sales under the Foreign Military 
Sales Act ^^^ and under title I of the Agricultural Trade Development 
and Assistance Act of 1954,^^® with respect to any country when the 
President determines that the government of such country has failed to 
take adequate steps to prevent narcotic drugs and other controlled 
substances (as denned by the Comprehensive Drug Abuse Prevention 
and Control Act of 1970) ^^^ produced or processed, in whole or in 
part, in such country, or transported through such country, from being 
sold illegally within the jurisdiction of such country to United States 
Government personnel or their dependents, or from entering the 
United States unlawfully. Such suspension shall continue until the 
President determines that the government of such country has taken 
adequate steps to carry out the purposes of this chapter. 

(b) 2^^ (1 ) Not later than forty-five days after the date on which each 
calendar quarter of each year ends, the President shall transmit to the 
Speaker of the House of Representatives, and to the Committee on 
Foreign Relations of the Senate, a report on the programing and 
obligation, on a calendar quarter basis, of funds under this chapter 
prior to such date. 

(2) Not later than forty-five days after the date on which the second 
calendar ciuarter of each year ends and not later than forty-five days 
after the aate on which the fourth calendar quarter of each year ends, 
the President shall transmit to the Speaker of the House of Repre- 
sentatives, and to the Committee on Foreign Relations of the Senate, a 
complete and detailed semiannual report on the activities and opera- 
tions carried out under this chapter prior to such date. Such semi- 
annual report shall include, but shall not be limited to — 

(A) the status of each agreement concluded prior to such date 
with other comitries to carry out the purposes of this chapter; 
and 

(B) the aggregate of obligations and expenditures made, and 
the tyijes and quantity of equipment provided, on calendar quar- 
ter basis, prior to such date — 

(i) to carry out the purposes of this chapter with respect 
to each country and each mternational organization receiv- 
ing assistance under this chapter including the cost of United 
States personnel engaged in carrying out such purposes in 
each such country and with each such international 
organization ; 

(ii) to carry out each program conducted under this chap- 
ter in each country and by each international organization, 
including the cost of United States personnel engaged in 
carrying out each such program ; and 

(iii) for administrative support services within the United 
States to carry out the purposes of this chapter, including 
cost of United States personnel engaged in carrying out such 
purposes in the United States. 

278 For text, see page 271. 
2™ For text, see page 342. 
280 84 Stat. 1236. 



I 

I 
I 



75 

(c)^^^(l) Notwithstanding any other provision of law, no officer or 
employee of the United States may engage or participate in any direct 
police arrest action in any foreign country with respect to narcotics 
control efforts. 

(2) The President shall carry out a study with respect to methods 
through which United States narcotics control programs in foreign 
countries might be placed under the auspices of international or 
regional organizations. The results of such study shall be transmitted 
to the Speaker of the House of Kepresentatives and the President 
of the Senate not later than June 30, 1977. 

Sec. 482,2*2 Authorization. — To carry out the purposes of sec- 
tion 481, there are authorized to be appropriated to the President 
$39,000,000 for the fiscal year 1978.^83 Amounts appropriated under 
this section are authorized to remain available until expended. 

Chapter 9 — International Disaster Assistance ^s* 

Sec. 491.285 286 Policy and General Authority.— (a) The Congress, 
recognizing that prompt United States assistance to alleviate human 
suffering caused by natural and manmade disasters is an im- 
portant expression of the humanitarian concern and tradition of the 
people of the United States, affirms the willingness of the United 
States to provide assistance for the relief and rehabilitation of people 
and countries affected by such disasters. 

(b) Subject to the limitation on appropriations in section 492, and 
notwithstanding any other provision of this or any other Act, the 
President is authorized to furnish assistance to any foreign country 
or international organization on such terms and conditions as he may 
determine, for international disaster relief and rehabilitation, includ- 
ing assistance relating to disaster preparedness, and to the prediction 
of, and contingency planning for, natural disasters abroad. 

281 Subsection (c) was added by Sec. 504(b) of the International Security Assistance and 
Arms Export Control Act of 1976. 

282 22 use 2291a, Sec. 482, as added by Sec. 503 of the Foreign Relations Authorization 
Act of 1972, was amended and restated by Sec. 3 of the International Security Assistance 
Act of 1977 (91 Stat. 614). It formerly read as follows : 

"Sec. 482. Authorization. — To carry out the purposes of section 481, there are au- 
thorized to be appropriated to the President $42,500,000 for each of the fiscal years 1974 
and 1975, $40,000,000 for the fiscal year 1976, no part of which may be obligated for or 
on behalf of any country where illegal traffic in opiates has been a significant problem 
unless and until the President determines and certifies In writing to the Spealter of the 
House of Representatives and the chairman of the Committee on Foreign Relations of 
the Senate that assistance furnished to such country pursuant to the authority in this 
chapter Is significantly reducing the amount of Illegal opiates entering the International 
market, and not to exceed $34,000,000 for the fiscal year 1977. Amounts appropriated 
under this section are authorized to remain available until expended." 

283 FA Appropriations Act. 1978 : 

"International narcotics control : For necessary expenses to carry out the provisions 
of section 481. $37,100,000: Provided. That not to exceed $3,000,000 shall be for the 
United Nations Fund for Drug Abuse Control : Provided further. That $12,475,000 shall 
be available only for programs In Mexico." 

284 Sec. 101(1) of Public Law 94-161 ('89 Stat. 849) substituted chapter heading "Inter- 
national Disaster Assistance" in lieu of "Refugee Relief Assistance". 

285 Former Sec. 491. which was added by Sec 109 of the FAAct of 1971, was repealed 
by Sec. 101(2) of Public Law 94-161 (89 Stat. 849). It formerly read as follows: "Sec. 
491. Refugee Relief Assistance. — There is authorized to be appropriated to the President 
for the fiscal year 1972, in addition to funds otherwise available for such purposes, not to 
exceed $250,000,000. to remain available until expended, for use by the President in provid- 
ing assistance for the relief and rehabilitation of refugees from East Pakistan and for 
humanitarian relief in F^st Pakistan. Such assistance shall be distributed, to the maximum 
extent practicable, under the auspices of and by international institutions and relief 
agencies or United States voluntary agencies." 

»» 22 use 2292. Sec. 491 was added by Sec. 101(3) of Public Law 94-161 (89 Stat. 849). 



76 

(c) In carrying out the provisions of this section the President shall 
insure that the assistance provided by the United States shall, to the 
greatest extent possible, reach those most in need of relief and rehabili- 
tation as a result of natural and manmade disasters. 

Sec. 492.'-^' Authorization. — There is authorized to be appropriated 
to the President to carry out section 491, $25,000,000 for each of the 
fiscal years 1977 and 1978.^®^ Amounts appropriated under this section 
are authorized to remain available until expended. The President shall 
submit quarterly reports to the Committee on Foreign Relations of 
the Senate and to the Speaker of the House of Representatives on the 
programing and obligation of funds under this section. 

Sec. 493.2®" Disaster Assistance — Coordination. — The President is 
authorized to appoint a Special Coordinator for International Dis- 
aster Assistance whose responsibility shall be to promote maximum 
effectiveness and coordination in responses to foreign disasters by 
United States agencies and between the United States and other 
donors. Included among the Special Coordinator's responsibilities 
shall be the formulation and updating of contingency plans for pro- 
viding disaster relief. 

Sec. 494.2"*" Disaster Relief Assistance. — There are authorized to 
be appropriated, in addition to other sums available for such purposes, 
$65,000,000 for use by the President for disaster relief and emer- 
gency recovery needs in Pakistan, and Nicaragua, under such terms 
and conditions as he may determine, such sums to remain available 
until expended. 

Sec. 494A.2»^ Famine and Disaster Relief to Drought-Stricken 
African Nations.^®^ — (a) The Congress affirms the response of the 
United States Government in providing famine and disaster relief and 
related assist-ance in connection with the drought in the -^^ nations of 
Africa. The President shall report to Congress as soon as possible on 
solutions to this problem of famine and further propose how any of 
these solutions may be carried out by multilateral organizations.^®* 

(b) Notwithstanding any prohibitions or restrictions contained in 
this or any other Act, there is authorized to be appropriated to the 
President, in addition to funds otherwise available for such purposes, 
$110,000,000 295 to remain available until expended, for use by the 
President, under such terms and conditions as he may determine, for 
emergency and recovery needs, including drought, famine, and disaster 
relief, and rehabilitation and related assistance, for the drought- 
stricken 296 nations of Africa. Of the amount authorized to be appro- 



28T 22 use 2292a. Sec. 492 was added by Sec. 101(3) of Public Law 94-161 (89 Stat. 849). 
288 Sec. 119 of the Internatlonial Development and Food Assistance Act of 1977 (91 Stat. 
541 ) added the reference to 1978 and struck out a reference to 1976. 

FA Appropriations Act. 1978 : v. • • 

"International disaster assistance : For necessary expenses to carry out the provisions 

288 22- use 2292b. Sec. 493 was added by Sec. 101(3) of Public Law 94-161 (89 Stat. 
849) 

2«o"22 use 2292c. Former Sec. 452, which was added bv Sec. 2(2) of the Foreign Disaster 
Assistance Act of 1974 (Public Law 93-333), was redesignated as Sec. 494 by Sec. 101(4) 
of Public Law 94-161 (89 Stat. 849). ^ ^ ^ ^.. . r ..^^.o 

2» 22 use 2292d. Former Sec. 639A, which was added by Sec. 20 of the FAAct of 1973, 
was redesignated as Sec. 494A by Sec. 101(5) of Public Law 94-161 (89 Stat. 849). 

292 Sec. 3(1) of the Foreign Disater Assistance Act of 1974 (Public Law 93-333, 88 Stat. 
290, approved July 8. 1974) substituted the words "Drought-stricken African Nations in 
lien of "the African Sahel" in the section caption. 

263 Sec. 3(2) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck 
the word "Sahelian" which appeared at this point. ^ ^ r. 

2M For other reports required to be submitted to eongress, see Reports to Congress, 

205 Sec. 3(3) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) 
substituted "$110,000,000" in lieu of $25,000,000". ^,^ ^ ^„ooo^ * i 

2»e Sec. 3(4) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck 
the word "Sahelian" which appeared at this point. 



77 

priated under this subsection, not more than $10,000,000 shall be 
available for Ethiopia. ^^^ 



Note. — Sec. 494B. African Development Program was re- 
designated as Sec. 120. Sahel Development Program — Planning. 



Sec. 495.29« Cyprus Relief and Rehabilitation.— The President is 
authorized to furnish assistance, on such terms and conditions as he 
may determine, for the relief and rehabilitation of refugees and other 
needy people in Cyprus. There is authorized to be appropriated for 
the purposes of this section, in addition to amounts otherwise avail- 
able for such purposes, $40,000,000.^^® Such amount is authorized to 
remain available until expended. Assistance under this section shall be 
pro\ided in accordance with the policy and general authority con- 
tained in section 491. 

Sec. 495A.3o« Guatemala Relief and Rehabilitation.— (a) The 
President is authorized to provide assistance, on such terms and con- 
ditions as he may determine, for the relief and rehabilitation of the 
people who have been victimized by the recent earthquakes in Guate- 
mala. There is authorized to be appropriated to the President to carry 
out the purposes of this section $25,000,000 for the fiscal year 1976, 
which amount is authorized to remain available until expended, except 
that not more than $4,000,000 of this amount shall be available for 
repairs to the Puerto Barrios highway in Guatemala. Assistance 
under this section shall be provided in accordance with the policy 
and general authority of section 491 of this Act. Obligations incurred 
prior to the enactment of this section against other appropriations 
or accounts for the purpose of providing relief and rehabilitation 
assistance to the people of Guatemala may be charged to the appro- 
priations authorized under this section. 

(b) Assistance made available under this section shall be distrib- 
uted to the maximum extent practicable through United States 
voluntary relief agencies and other international relief and develop- 
ment organizations. 

(c) In order to limit the extent of deaths, injuries, and destruc- 
tion in future earthquakes, assistance provided under this section 
which is used for the construction of housing in the Republic of Guate- 
mala shall, to the maximum extent possible, be used for housing which 
is constructed of seismic resistant materials or which will otherwise 



"^Sec. 3 (5) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) added 
this sentence. 

288 22 use 2292f. Sec. 495 was added by Sec. 101(8) of Public Law 94-161 (89 Stat. 849). 

289 Sec. 402 of the International Security Assistance and Arms Export Control Act of 1976 
substituted "$40,000,000" in lieu of "$30,000,000". 

FA Anpropriations Act. 1976: "Cynrus relief and rehabilitation: For necessary ex- 
penses to carry out the provisions of section 495. $25,000,000. 

For "Cvnrus relief and rehabilitation" for the period July 1, 1976, through September 30, 
1976. «.=> ono.non." 

300 22 use '2292g. Sec. 495A was added by Sec. 2 of Public Law 94-276 (90 Stat. 397). 

FA Appropriations Act 1978 : 

"International disaster assistance : For necessary expenses to carry out the provisions 
of section 49.jA, .$45,000,000 : Provided, That of this amount $25,000,000 shall be avail- 
able only for Guatemala disaster relief assistance : Provided further. That the President 
shall submit quarterly reports to the Committee on Appropriations of the United States 
Senate and to the Committee on Appropriations of the House of Representatives on the 
programing and obligation of funds appropriated for International Disaster Assistance." 



78 

miinmizp tlio (lan<r('r of injury to occupants (lui'in<r future oartlKjuakes : 
and the Picsidcnt sliould cncoura<rc the (lOvernuuMit of the Republic 
of (ruatemalii to i)roniote tlie use of sucli materials. 

(d) Notwithstanding- any other provision of law. the amount au- 
thorized to he appropriated in subsection (a) of this section may be 
used only for the purposes specified in this section. The authority con- 
tained in section ()l()(a) of this Act may not be used to transfer 
funds made available under this section. 

(e) Xot later than sixty days after the date of enactment of appro- 
piiations to carry out this section, and at the end of each quarter 
thereafter, the President shall transmit a report to the Connnittees on 
Forei<rn Relations and Appropriations of the Senate and to the 
Speaker of the House of Representatives on the pro^rraniing and 
obliofations of fimds under this section. 

Sec. 495B.''^^ Italy Relief and Rehabilitation.— (a) In addition 
to Jimounts otherwise a\ailable for such purpose, there is authorized 
to be api)ropiiated $Lir),()0().()()() for the fiscal year 1976 to furnish 
assistance under this chapter .for tlie relief and rehabilitation of the 
people who have been victimized by the recent earthquake in Italy. 
Amounts appropriated under this section are authorized to remain 
available until expended. 

(b)''"- There are authorized to be appropriated to the President 
$30,000,000 for the fiscal year 1078 for relief, reliabilitation, and re- 
construction assistance, in accordance witli the provisions of section 
491 and on such terms and conditions as he may detennine, for the 
people who have ])een victimized by the recent earthquakes in Italy. 
Amounts appropriated under this subsection are authorized to re- 
main available until expended. 

(c) Obligations incurred prior to the date of enactment of this sec- 
tion against other appropriations or accounts for the purpose of pro- 
viding relief and rehabilitation assistance to the people of Italy may be 
charged to the a]:>propriations authorized under this section. 

Sec. 495C.^°\ Lebanon Relief and Rehabilitation.— (a) The Con- 
gress, recognizing that prompt United States assistance is necessary 
to alleviate the human suffering arising from the civil strife in Lebanon 
and to restore the confidence of the people of Lebanon, authorizes the 
President to furnish assistance, on such terms and conditions as he 
may determine, for the relief and rehabilitation of refugees and other 
needy people in Lebanon. 

(b) There is authorized to be appropriated to the President for the 
purposes of tliis section, in addition to amounts otherwise available 
for such purposes, $20,000,000, Avhich amount is authorized to remain 
available until expended. ^°* 

(c) Assistance imder this section shall be provided in accordance 
with the policies and general authority contained in section 491. 



301 22 use 220211. Sec. 494B was added by Sec. 415 of the International Security 
Assistance and Arms Export Control Act of 1976. 

'02 Sec. 120 of the International Development and Food Assistance Act of 1977 (91 
Stat. 541) redesignated subsection (b) as subsection (c) and added this new subsec- 
tion (b). 

FA Appropriations Act, 1978 : 

"Italy relief and rehabilitation assistance : For necessary expenses to carry out the 
provisions of section 495B. .'525.000,000." 

303 22 use 22921. Sec. 495e was added by Sec. 416 of the International Security Assist- 
ance and Arms Export Control Act of 197G. 

*^ FA Appropriations Act. 1977 : "For necessary expenses to carry out the provisions 
of section 495e, $20,000,000." 



79 

(d) Obligations incurred prior to tlie date of enactment of this sec- 
tion ag-ainst other appropriations or accounts for the purpose of pro- 
viding relief and rehabilitation assistance to the people of Lebanon 
may be charged to the appropriations authorized under this section. 

(e) Not later than sixty days after the date of enactment of appro- 
priations to carry out this section, and on a quarterly basis thereafter, 
the President shall transmit reports to the Committees on Foreign 
Kelations and Appropriations of the Senate and to the Speaker of the 
House of Representatives regarding the programing and obligation 
of funds under this section. 

Sec. 495D.3o= Romanian Relief and Rehabilitation.— (a) The 
Congress, recognizing that prompt United States assistance is neces- 
sary to alleviate the human suffering arising from recent earthquakes 
in Romania, authorizes the President to furnish assistance, on such 
terms and conditions as he may determine, for the relief and rehabili- 
tation of refugees and other earthquake victims in Romania. 

(b) There are hereby authorized to be appropriated to the Presi- 
dent for the fiscal year 1977, notwithstanding any other provisions of 
this Act, in addition to amounts otherwise available for such pur- 
poses, not to exceed $20,000,000, which amount is authorized to re- 
main available until expended.^°^ 

(c) Assistance under this section shall be provided in accordance 
with the policies and general authority contained in section 491. 

(d) Obligations incurred prior to the date of enactment of this 
section against other appropriations or accounts for the purpose of 
providing relief and rehabilitation assistance to the people of Romania 
may be charged to the appropriations authorized under this section. 

(e) Not later than sixty days after the date of enactment of appro- 
priations to cany out this section, and on a quarterly basis thereafter, 
the President shall transmit reports to the Committees on Foreign 
Relations and Appropriations of the Senate and to the Speaker of 
the House of Representatives regarding the programing and obli- 
gation of funds under this section. 

(f) Nothing in this section shall be interpreted as endorsing any 
measure undertaken by the Government of Romania which would 
suppress human rights as defined in the Conference on Security and 
Co-operation in Europe (Helsinki) Final Act and the United Nations 
Declaration on Pluman Rights, or as constituting a precedent for or 
commitment to provide United States development assistance to 
Romania, and the Romanian Government shall be so notified when 
aid is furnished under this section. 

Sec. 495D.3«" Turkey Relief, Rehabilitation, and Reconstruc- 
tion.— Tlie President is requested to use up to $10,000,000 of the funds 
made available imder section 492 of this Act to provide relief, reha- 
bilitation, and reconstruction assistance to the victims of the recent 
earthquakes in Turkey. 

30=22 use 2202J. Sec. 495D (relatinjr to Romanian Relief and Rehabilitation) was 
added by Public Law 95-21 (91 Stat. 48). Since both this section and the next were added 
as 495D, it is anticipated that one of them will be redesignated as 495E during 1978. 

.TOO FA Appropriations Act, 1978 : 

"Sec. 001. For expenses necessary to carry out the provisions of section 495D of the 
Foreign Assistance Act of 1961. as amended. $1.3,000.000 for the fiscal year 1977 for 
Romanian relief and rehabilitation a.ssistance. to remain available until" expended." 

^22 use 2292k. Sec. 495D (relating to Turkey Relief, Rehabilitation, and Recon- 
struction) was added by Sec. 121 of the International Development and Food Assist- 
ance Act of 1977 (91 Stat. 541). 



80 

Chapter 10 — Assistance to Portugal and Portuguese Colonies in 
Africa Gaining Independence --^^ 

Sec. 496.*°" (a) ^^° Assistance to Portugal and Portuguese Colo- 
nies in Africa Gaining Independence. — There are authorized to be 
appropriated to tlic President for the fiscal year 1975, in addition to 
funds otlierwise available for such purposes, not to exceed — 

(1) $7,750,000 to make grants: and -^^ 

(2) $17,250,000 to make loans; ^12 

to remain available until expended, for use by the President in provid- 
ing economic assistance, on such terms and conditions as he may deter- 
mine, for Portugal and the countries and colonies in Africa which 
were, prior to April 25, 1974, colonies of Portugal. 

(b) ^^^ Notwithstanding the provisions of section 020 (r) of this Act, 
the United States is authorized to forgive the liability incurred by the 
Government of the Cape Verde Islands for the repayment of a 
$3,000,000 loan on June ao, 1975. 

(c) ''' The President is authorized to use up to $30,000,000 of the 
funds made available under this part for the fiscal year 197G, in 
addition to funds otherwise available for such purposes, to provide 
development assistance in accordance with chapter 1 or relief and 
rehabilitation assistance in accordance with chapter 9 (including 
assistance through international or private voluntary organizations) 
to countries and colonies in Africa wliicli were, prior to April 25, 1974 
colonies of Portucfal. 

Sec. 497. '^ * Balance of Payments Loan for Portugal. — (a) In rec- 
ognition of the established interest of the United States in fostering a 
democratic government in Portugal, in maintaining the strength of 
the Xorth Atlantic Treaty Organization alliance, and in supporting 
Euroi)ean economic recovery, tlie purpose of this section is to provide 
essential balance of payments assistance to Portugal. 

(b) The President is authorized to make balance of payments sup- 
port loans to Portugal as part of a special international effort to assist 
that country in the development and implementation of a program to 
gain financial stability and economic recovery. 

(c) There are authorized to be appropriated to the President not 
to exceed $300,000,000 for the fiscal year 1978 to carry out the purposes 
of this section, which amount is authorized to remain available until 
expended.^^^ 



308 Chapter 10 was added by Sec. 53 of the FAAct of 1974. 

■■^^ 22 use '22U:i Sec. 49G was added bv Sec. 53 of the FAAct of 1974. 

FA Appropriation Act. 1975: '$2."). 000. 000. Provided, That of the funds appropriated 
under this parajiraph not less than .$5,000,000 shall be allocated for the Cape Verde 
Islands and not less than $5,000,000 shall be allocated for Mozambique, Guinea Bissau, 
and Anjrola". 

3w Sec. 814(1) of Public Law 94-161 (S9 Stat. 849) added i)arajrraph desijrnation "(a) . 

•ai Sec. 314(2) of Public Law 94-161 (89 Stat. 849) substituted "$7,750,000" in lieu of 
"$5,000,000". 

31^' Sec. 314(3) of Public Law 94-161 (89 Stat. 849) substituted "$17,250,000" in lieu 
of "$20,000,000". 

313 Sec. 314(4) of Public Law 94-161 (89 Stat. 849) added subsections (b) and (c). 
chapter heading:, which fornierl.v read --Shokt Title axd Policy". 

31*22 use 2294. Sec. 497 was added by Sec. 4 of the International Security Assistance 
Act of 1977 (91 Stat. 614). 

315 FA Appropriations Act. 1978 : ... 

"Security supporting assistance : For necessary expenses to carry out the provisions ot 
sections 497. 531. and 533 of the Foreign Assistance Act of 19(11. as amended, and those 
provisions of section 903 of the Foreign Assistance Act of 1961 which pertain to the 
Sinai support mission, $2,202,200,000: Provided, That the funds appropriated under this 
liarngraph. $785,000,000 s'lall be allocated to Israel. $750,000,000 shall be allocated to 
Egypt. $93,000,000 shall be allocated to Jordan, and $90,000,000 shall be allocated to 
Syria." 



81 

PART II 

Chapter 1— Policy ^^^ 

Sec. 501.^^' Statement of Policy. — The Congress of the United 
States reaffirms the ]:)olicy of the United States to achieve international 
peace and security through the United Nations so that armed force 
shall not be used except for individual or collective self-defense. The 
Congress hereby finds that the efforts of the United States and other 
friendly countries to promote peace and security continue to require 
measures of support based upon the principle of effective self-help and 
mutual aid. It is the purpose of this part to authorize measures in the 
common defense against internal and external aggression, including 
the furnishing of military assistance, upon request, to friendly coun- 
tries and international organizations. In furnishing such military 
assistance, it remains the policy of the United States to continue to 
exert maximum efforts to achieve universal control of weapons of mass 
destruction and universal regulation and reduction of armaments, in- 
cluding armed forces, under adequate safeguards to protect complying 
countries against violation and evasion. 

The Congress recognizes that the peace of the world and the security 
of the United States are endangered so long as international com- 
munism and the countries it controls continue by threat of military 
action, by the use of economic pressure, and by internal subversion, 
or other means to attempt to brin^ under their domination peoples 
now free and independent and continue to deny the rights of freedom 
and self-government to peoples and countries once free but now sub- 
ject to such domination. 

It is the sense of the Congress that an important contribution toward 
peace would be made by the establishment under the Organization of 
American States of an international military force. 

In enacting this legislation, it is therefore the intention of the Con- 
gress to promote the peace of the world and the foreign policy, se- 
curity, and general welfare of the United States by fostering an 
improved climate of political independence and individual liberty, 
improving the ability of friendly countries and international organiza- 
tions to deter or, if necessary, defeat Communist or Communist-sup- 
ported aggression, facilitating arrangements for individual and 
collective security, assisting friendly countries to maintain internal 
security, and creating an environment of security and stability in the 
developing friendly countries essential to their more rapid social, eco- 
nomic, and political progress. The Congress urges that all other coun- 
tries able to contribute join in a common undertaking to meet the goals 
stated in this part. 

It is the sense of the Congress that in the administration of this 
part priority shall be given to the needs of those countries in danger 
of becoming victims of active Communist or Communist-supported 
aggression or those countries in which the internal security is threat- 
ened by Communist-inspired or Communist-supported internal 
subversion.^^^ 



^i« Soo. 201(a) of flio FAArt of 1008 stnifk out tlip words "Short Title and" in tlio 
ch.apter headincr. which formerly read "Short Title and Policy". 

^'22 use §2801. Former Sec. 502 Avns desiennted See. HOI hv Sec. 201(a)(1) of the 
FA Act of 1967. Former Sec. 501, which related to the short title, was repealed by Sec. 
201 rb) of the FAAct of 19fi8. 

318 This paragraph was added by Sec. 201(a) (2) of the FAAct of 1967. 



82 

Finiilly, the Congiess reaflirms its full support of tlie pio«rioss of tlh 
members of the North Atlantic Treaty Organization toward in- 
creased cooperation in political, military, and economic all'airs. In 
particular, the Congiess welcomes the steps which have been taken to 
promote multilateral programs of coordinated procuivment, research, 
development, and production of defense articles and urges that such 
programs be exi)anded to the fullest extent possible to further the 
defense of the North Atlantic area. 

Sec. 502.^^9 utilization of Defense Articles and Services.— 
Defense articles and defense services '"'^^ to any country shall be fur- 
nished solely for internal security, for legitimate sell -defense, to 
permit the recii)ient country lo participate in regional or collective 
arrangements or measures consistent with the Charter of the United 
Nations, or otherwise to permit the recipient country (o participate 
in collective measures requested by the United Nations for the purpose 
of maintaining or restoring international peace and security,^^^ or 
for (he purpose of assisting foreign military forces in less developed 
friendly countiies (or the voluntary efforts of personnel of the Armed 
Forces of the United States in such countries) to construct public 
works and to engage in other activities helpful to the economic and 
social development of such friendly countries. It is the sense of the 
Congiess that such foreign military forces should not be maintained or 
established solely for civic action activities and that such civic action 
activities not significantly detract from the capability of the military 
forces to [)erf()rni their military missions and be coordinated with and 
foini part of the total economic and social development effort. 

Sec. 502A.^22 Excess Defense Articles. — P^xcess defense articles 
shall be provided wlienever possible lather than providing such arti- 
cles by the piocnrement of new items. 

Sec. 502B.^^^ Human Rights.— (a) (1) It is the policy of the United 
States, in accordance with its international obligations as set forth in 
the Charter of the United Nations and in keeping w^ith the constitu- 
tional heritage and traditions of the United States, to promote and 
encourage increased respect for human rights and fundamental free- 

•■"» 22 use § 2302. Former subsection (a) of Sec. 505 was redesignated Sec. 502 by Sec. 
201 (d) (1) of the FAAct of 1967. 

•■^oT e words to this point were substituted for "Utilization of Assistance. — (a) 
Military assistance" by Sec. 201(d) (2) of the FAAct of 1967. 

■«i Sec. 201(c)(1) of the FAAct of 1965 struck oat a colon and added the remainder of 
this section from this point. 

^■~ 22 use 2303. Sec. 502 v was added by Sec. 12(a) of the FAAct of 1973. 

32-22 use 2304. Sec. 502B, w.ii(h w.is adc'ed by Sec. 46 of the FAAct of 1974, was 
amended by Sec. 301(a) of the International Security Assistance and Arms Export 
Control Act of 1976. It formerly read as folio .vs : 

"Sec. 502B. Huma.v Rig its. — It is the sense of Congress that, except in extraordinary 
circumstances, the President shall substantially reduce or terminate security assistance 
to any government which engages in a consistent pattern of gross violations of inter- 
nationally recognized human rights, including torture or cruel, inhuman or degrading 
treatment or punishment ; prolonged detention without charges ; or other flagrant denials 
of the right to life, liberty, and the security of the person. 

(b) Whenever proposing or furnishing security assistance to any government falling 
within the provisions of paragraph (a), the President shall advise the Congress of the 
extraordinary circumstances necessitating the assistance. 

(c) In determining whether or not a government falls within the provisions of subsection 
(a), consideration shall be given to the extent of cooperation by such government in 
rermittinr an imim) e^ed investig-^tion of alleged violations of internatirnally recognized 
human rights by appropriate international organizations, including the International 
eommittee of the Red Cross and anybody acting under the authority of the United Nations 
or of the Organization of American States. 

(d) For purposes of this section, 'security assistance' means assistance under chapter 2 
(military assistance) or chapter 4 (security supporting assistance) of this part, assistance 
un; er part V (Indochina Postwar Reconstruction) or part VI (Middle East Peace) of this 
Act. sales under the Foreign Military Sales Act, or assistance lor public safety under this 
or any other Act." 



83 

doms for a,ll without distinction as to race, sex, lan<^uage, or religion. 
To this end, a principal goal of the foreign policy of the United States 
is to promote the increased observance of internationally recognized 
human rights by all countries. 

(2) It is further the policy of the United States that, except under 
circumstances specified in this section, no security assistance may be 
provided to any country the government of which engages in a con- 
sistent pattern of gross violations of internationally recognized human 
rights. 

(3) In furtherance of the foregoing policy the President is directed 
to formulate and conduct international security assistance programs 
of the United States in a manner which will promote and advance 
human rights and avoid identification of the United States, through 
such programs, with governments which deny to their people inter- 
nationally recognized human rights and fundamental freedoms, in 
violation of international law or in contravention of the policy of the 
United States as expressed in this section or otherwise. 

(b) The Secretary of State shall transmit to the Congress, as part 
of the presentation materials for security assistance programs pro- 
posed for each fiscal year, a full and complete report, prepared with 
the assistance of the Assistant Secretary of State for Human Rights 
and Humanitarian Affairs,^^* with respect to practices regarding the 
observance of and respect for internationally recognized human rights 
in each country proposed as a recipient of security assistance. In deter- 
mining whether a government falls within the provisions of subsection 
(a) (3) and in the preparation of any report or statement required 

under this section, consideration shall be given to — 

(1) the relevant findings of appropriate international organi- 
zations, including nongovernmental organizations, such as the 
International Committee of the Red Cross ; and 

(2) the extent of cooperation by such government in permit- 
ting an unimpeded investigation by any such organization of 
alleged violations of internationally recognized human rights. 

(c) (1) Upon the request of the Senate or the House of Repre- 
sentatives by resolution of either such House, or upon the request of 
the Committee on Foreign Relations of the Senate or the Commit- 
tee on International Relations of the House of Representatives, the 
Secretary of State shall, within thirty days after receipt of such 
request, transmit to both such committees a statement, prepared with 
the assistance of the Assistant Secretary of State for Human Rights 
and Humanitarian Affairs,^^* with respect to the country designated in 
such request, setting forth — 

(A) all the available information about observance of and re- 
spect for human riglits and fundamental freedom in that country, 
and a detailed description of practices by the recipient govern- 
ment with respect thereto ; 

(B) the steps the United States has taken to — 

(i) promote respect for and observance of human rights in 
that country and discourage any practices which are inimical 
to internationally recognized human rights, and 

■'*Sec. 109(aU3) of the Fo'eijrn Relations Authorizntion Act. Fiscal Year 1078 (91 
Stat. 846) s.ibstituted the title designation of Assistant Secretary of State in lieu of 
Coordinator. 



84 

(ii) publicly or privately call attention to, ami disassociate 
the United States and any security assistance provided for 
such country from, such practices ; 

(C) whether,* in the opinion of the Secretary of State, notwith- 
standing any such practices — 

(i) extraordinary circumstances exist which necessitate a 
continuation of security assistance for such country, and, if 
so, a description of such circumstances and the extent to which 
such assistance should be continued (subject to such condi- 
tions as Congress may impose under this section), and 

(ii) on all the facts it is in the national interest of the 
United States to provide such assistance ; and 

(D) such other information as such committee or such House 
may request. 

(2) (A) A resolution of request under paragraph (1) of this subsec- 
tion shall be considered in the Senate in accordance witli the provisions 
of section GOl(b) of the International Security Assistance and Arms 
Export Control Act of 1976.^^^ 

(B) The term ^'certification'', as used in section GOl of such Act, 
means, for the purposes of this subsection, a resolution of request of 
tiie Senate under paragraph (1) of this subsection. 

(3) In the event a statement with respect to a country is requested 
pursuant to paragraph (1) of this subsection but is not transmitted 
in accordance therewith within thirty days after receipt of such re- 
quest, no security assistance shall be delivered to such country except 
as may thereafter be specifically authorized by law from such country 
unless and until such statement is transmitted. 

(4) (A) In the event a statement with respect to a country is trans- 
mitted under paragraph (1) of this subsection, the Congress may at 
any time thereafter adopt a joint resolution terminating, restricting, 
or continuing security assistance for such country. In the event such a 
joint resolution is adopted, such assistance shall be so terminated, so 
restricted, or so continued, as the case may be. 

(B) Ajiy such resolution shall be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

(C) The term ''certification ', as used in section GOl of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under paragraph (1) of this subsection. 

(d) For the purposes of this section — 

(1) the term "gross violations of internationally recognized 
human rights'' includes torture or cruel, inhuman, or degrading 
treatment or punishment, prolonged detention without charges 
and trial, and other flagrant denial of the right to life, liberty, 
or the security of person ; and 

(2) the term 'security assistance" means — 

(A) assistance under chapter 2 (military assistance) or 
chapter 4 (security supporting assistance) or chapter 5 (mili- 
tary education and training) of this part or part VI (assist- 
ance to the Middle East) of this Act; 

325 For text, see page 313. 



85 

(B) sales of defense articles or services, extensions of 
credits (including participations in credits ^^^, and guaranties 
of loans under the Arms Export Control Act ; or 

(C) any license in effect with respect to the export of 
defense articles or defense services to or for the armed forces, 
polire, intelli<2:ence. or other iiitomal Fcciu'itv forces of a 
foreign country under section 38 of the Arms Export Control 
Act.3=^^ 

Chapter 2 — Military Assistance 

Sec. 503.-^28 General Authority.— (a) The President is authorized 
to furnish militaiy assistance, on such terms and conditions as he may 
determine, to any friendly country or international organization, the 
assisting of which the President finds will strengthen the security of 
the United States and promote world peace and which is otherwise 
eligible to receive such assistance, by — 

(1) acquiring from any source and providing (by loan or grant) 
any defense article or defense service ; or 

(2) assigning or detailing members of the Armed Forces of the 
United States and other personnel of the Department of Defense 
to perform duties of a non-combatant nature. 

(b) In addition to such other terms and conditions as the President 
may determine pursuant to subsection (a), defense articles may be 
loaned thereunder only if — 

( 1 ) there is a bona fide reason, other than the shortage of funds, 
for providing such articles on a loan basis rather than on a grant 
basis ; 

(2) there is a reasonable expectation that such articles will be 
returned to the agency making the loan at the end of the loan 
period unless the loan is then renewed ; 

(3) the loan period is of fixed duration not exceeding five years, 
during which such article may be recalled for any reason by the 
United States; 

(4) the agency making the loan is reimbursed for the loan based 
on the amount charged to the appropriation for military assist- 
ance under subsection (c) ; and 

(6) arrangements are made with the agency making the loan 
to be reimbursed in the event such article is lost or destroyed 
while on loan, such reimbursement being made first out of any 
funds available to carry out this chapter and based on the de- 
preciated value of the article at the time of loss or destruction. 

32« While the printed slip law did not include a close parentheses in subparagraph (B), 
it is interpreted that sucn a mark was intended to be inserted at this point. 
^ T^or text see pape 2 '^3. 

228 22 use 2311. Sec. 12(b) (1) of the FAAct of 1973 amended Sec. 503, which formerly 
read as follows : 

"Sec. 503. General Authority. — The President is authorized to furnish military assist- 
ance on such terms and conditions as he may determine, to any friendly country or interna- 
tional organization, the assisting of which the President finds will strengthen the security 
of the United States and promote world peace and which is otherwise eligible to receive 
such assistance by — 

■•(a ) a <iiiiii!ig from any source and providing (by loan or grant) any defense article 
or defense service ; 

••(b) iiKiking linanciMl contributions to multilateral programs for the acquisition or 
construction oif facilities for collective defense ; 

"(c) providing financial assistance for expenses incident to participation by the 
United States Goxernment In regional or collective defense organizations: 

"(d) assigning or detailing members of the Armed Forces of the United States and 
other personnel of the Department of Defense to perform duties of a nonconibatant 
nature, including thos^ related to training or advice." 



86 

(c)(1) In the case of any loan of a defense article or defense service 
made under this section, there shall be a charge to the appropriation 
for military assistance for any fiscal year while the article or service 
is on loan in an amount based on — 

(A) the out-of-pocket expenses authorized to be incurred in 
connection with such loan during such fiscal year; and 

(B) the depreciation which occurs during such year while such 
article is on loan. 

(2) The provisions of this subsection shall not apply — 

(A) to any particular defense article or defense service which 
the United States Government agreed, prior to the date of enact- 
ment of this subsection, to lend ; and 

(B) to any defense article or defense service, or portion thereof, 
acquired with funds appropriated for military assistance under 
this Act. 

Sec. 504. -■' Authorization. — (a) ^^° (1) There are authorized to be 
appropriated to the President to carry out the purposes of this chapter 
not to exceed $2'28,900,000 for the fiscal year 1978. Not more than the 
following amounts of funds available to carry out this chapter may be 
allocated and made available for assistance to each of the following 
countries for the fiscal year 1978 : 

Greece $33. 000, 000 

Portugal '"' 25. 000. 000 

Spain 15, 000. 000 

Turkey 48, 000, 000 

Jordan 55, 000, 000 

Indonesia 15, 000, 000 

Philippines 19, 600. 000 

Thailand 8, 000, 000 

The amount specified in this paragraph for military assistance to 
any such country for the fiscal year 1978 may be increased by not more 
than 10 per centum of such amount if the President deems such increase 
necessary for the purposes of this chapter. 

(2) Except with respect to costs incurred under the authority of 
section 516(b) or as otherwise specifically authorized by law, nono 
of the funds available for assistance under this chapter may be used 
to provide assistance to any recipient other than the countries specified 
in paragraph (1). 

(3) The authority of section 610(a) and of section 614(a) may 
not be used to increase any amount specified in paragraph (1) or to 
waive the limitations of paragraph (2). 

(4) Amounts appropriated under this subsection are authorized to 
remain available until expended. 



329 22 use 2312. 

330 subsection (a), as amended by Sec. 101 of the International Security Assistance and 
Arms Export Control Act of 1976, was amended and restated by Sec. 5(a) of the Interna- 
tional Security Assistance Act of 1977 (91 Stat. 614). 

FA Appropriations Act. 1978 : 

"Military assistance : For necessary expenses to carry out the provisions of section o03 
of the Foreign Assistance Act of 1961. as amended, including administrative expenses and 
purchase of nassencrer motor vehicles for replacement only for use outside of the United 
States. $220.000 000: Provided, That none of the funds contained in this paragraph shall 
be available for the purchase of new automobile vehicles outside of the United States." 

3^^ During 1977. Public Law 95-23 (91 Stat. 54) provided for supplemental military 
assistance to Portugal for FY 1977 in the amount of $32,250,000. This amendment was 
subseouentlv superceded bv the fimendment referred to in footnote 330 above, and there- 
fore, the amendment made bv Public Law 95-23 to Sec. 504(a) does not appear in the 
text. Supplemental Appropriations Act, 1977 (Public Law 95-26) appropriated $17,250,000 
for such assistance. 



87 

(b) In order to make sure that a dollar spent on military assistance 
to foreign countries is as necessary as a dollar spent for the United 
States military establishment, the President shall establish procedures 
for programing and budgeting so that programs of military assistance 
come into direct competition for financial support with other activities 
and programs of the Department of Defense. 

Sec. 505.^^- Conditions of Eligibility. — (a) In addition to such 
other provisions as the President may require, no defense articles or 
related training or other defense service ^^^ shall be furnished to any 
country on a grant basis unless it shall have agreed that — 

(1) it will not, without the consent of the President — 

(A) permit any use of such articles or related training or 
other defense service ^^^ by anyone not an officer, employee, or 
agent of that country, 

(B) transfer, or permit any officer, employee, or agent of 
that country to transfer such articles or related training or 
other defense service ^^^ by gift, sale, or otiierwise, or 

(C) use or permit the use of such articles or related train- 
ing or other defense service ^^^ for purposes other than those 
for which furnished ; 

(2) it will maintain the security of such articles or related 
training or other defense service,^^^ and will provide substantially 
the same degree of security protection afforded to such articles or 
related training or other defense service ^^^ by the United States 
Government ; 

(3) it will, as the President msLj require, permit continuous 
observation and review by, and furnish necessary information to, 
representatives of the United States Government with regard to 
the use of such articles or related training or other defense serv- 
ice ; ^^^ and 

(4) unless the President consents to other disposition, it will i-e- 
tum to the United States Government for such use or disposition 
as the President considers in the best interests of the United 
States, such articles or related training or other defense service ^^^ 
which are no longer needed for the purposes for which furnished. 

(b) No defense articles shall be furnished on a grant basis to any 
country at a cost in excess of $3,000,000 in any fiscal year unless the 
P]*e5ident determines — 

(1) that such country conforms to the purposes and principles 
of the Charter of the United Nations; 

(2) that such defense articles will be utilized by such country 
for the maintenance of its own defensive strength, or ^^* the de- 
fensive strength of the free world ; 

(3) that such country is taking all reasonable measures, con- 
sistent with its political and economic stability, which may be 
needed to develop its defense capacities; and 

(4) that the increased ability of such country to defend itself 
is important to the security of the United States. 

^32 22 use 5 2314. Former Sec. 506 was redesignated Sec. 505 by Sec. 201(e) of the 
FAArt of infi7. 

»3 Sec. 203(b) of the International Security Assistance and Arms Export Control Act 
9f 1976 added the words "or related traininjr or other defense service". 

3=* Sec. 201(b) of the FAAct of 1971 substituted "or" in lieu of "and". 



(c)-'" TIk' President shall reirularly reduce and. with such dcdih- 
erate speed as orderly procedure and other relevant considerations, in- 
cluding prior commitments, will permit, shall terminate all further 
grants of military equipment and supplies to any country having suf- 
ficient wealth to enable it, in the judgment of the President, to main- 
tain and equip its own military forces at adequate strength, without 
undue burden to its economy. 

(d) ^^^ ^^*^ (1) Assistance and deliveries of assistance under tliis chap- 
ter to any country shall be terminated as hereinafter provided, if such 
country uses defense articles or defense services furnished under this 
Act, the Mutual Security Act of 1954,-^^^ or any predecessor Foreign 
Assistance Act, in substantial violation (cither in terms of quantities 
or in terms of the gravity of the consequences regardless of the quan- 
tities involved) of any agreement entered into pursuant to any such 
Act (A) by using such articles or services for a purpose not author- 
ized under section 502 or, if such agreement provides that such articles 
or services may oidy be used for purposes more limited than those 
authorized under section 502, for a purpose not authorized under such 
agreement; (B) by transferring such articles or services to, or per- 
mitting any use of such articles or services by, anyone not an officer, 
employee, or agent of the recipient country witliout the consent of the 
President; or (C) by failing to maintain tlie security of such articles 
or services. 

(2) (A) Assistance and deliveries of assistance shall be terminated 
pursuant to paragrai)h (1) of this subsection if the President so 
determines and so states in writing to the Congress, or if the Congress 
so finds by joint resolution. 

(B) Tiie President shall report to the Congress promptly upon the 
receipt of information that a violation described in paragraph (1) of 
this subsection may have occurred. 

(3) Assistance to a country shall remain terminated in accord- 
ance with paragraph (1) of this subsection until such time as — 

(A) the President determines that the violation has ceased; 
and 

(B) the country concerned has given assurances satisfactory 
to the President that such violation will not recur. 

(4) The authority contained in section 614(a) of this Act may not 
be used to waive the provisions of this section with respect to further 
assistance under this chapter. 

(e) ^^^ In considering a request for approval of any transfer of any 
weapon, weapons system, munitions, aircraft, military boat, military 
vessel, or other implement of war to another country, the President 
shall not give his consent under subsection (a) (1) or (a) (4) to the 
transfer unless the United States itself would transfer the defense 
article under consideration to that countrv.^^^ In addition, the Presi- 



s--^ Subspctions (c) and (d) were added bv Sec. 201(a) of the FAAct of 19R2. 

339 Sec. '304(a) of the International Security Assistance and Arms Export Control Act of 
1976 amended Subsection (d) which formerly read as follows : 

"(d) Anv country which hereafter uses defense articles or defense services furnished 
such country under" this Act. the Mutual Security Act of 1954. as amended, or any prede- 
cessor foreign assistance Act, in substantial violation of the provisions of this chapter or any 
aerreements entered into pursuant to any of such Acts shall be Immediately ineligible for 
further assistance." 

^^' For text, see pace 227. 

338 Former subsection (e). which related to conditions of eligibility, was repealed In 1971. 
Subsections (e) and (f) were added by Sec. 12(3) of the FAAct of 1973. 



89 

dent shall not give his consent under subsection (a)(1) or (a) (4) 
to the transfer of any significant defense articles on the United 
States Munitions List unless the foreign country requesting con- 
sent, to transfer agrees to demilitarize such defense articles prior to 
transfer, or the proposed recipient foreign country provides a com- 
mitment in writing to the United States Government that it will not 
transfer such defense articles if not demilitarized, to any other foreign 
country or person without first obtaining the consent of the President. 

(f) ^^^ Eifcctive July 1, 1974, no defense article shall be furnished 
to any country on a grant basis unless such country shall have agreed 
that the net proceeds of sale received by such country in disposing of 
any weapon, weapons system, munition, aircraft, military boat, mili- 
tary vessel, or other implement of war received under this chapter will 
be paid to the United States Government and shall be available to pay 
all official costs of the United States Government payable in the cur- 
rency of that country, including all costs relating to the financing of 
international educational and cultural exchange activities in which 
that country participates under the programs authorized by the Mutual 
Educational and Cultural Exchange Act of 1961.^^" 

(g) 341 ^;|^^ j^ jg l]^(, policy of the United States that no assistance 
under this chapter shoidd be furnished to any foreign country, the 
laws, regulations, official policies, or governmental practices of which 
prevent any United States person (as defined in section 7701 (a) (30) 
of the Internal Revenue Code of 1954) from participating in the 
furnishing of defense articles or defense services under this chapter 
on the basis of race, religion, national origin, or sex. 

(2) (A) Xo agency performing functions under this chapter shall, 
in emplo^nng or assigning personnel to participate in the performance 
of any such function, whether in the United States or abroad, take 
into account the exclusionary policies or practices of anj- foreign gov- 
ernment where such policies or practices are based upon race, religion, 
national origin, or sex. 

(B) Each contract entered into by any such agency for the per- 
formance of any function under this chapter shall contain a provision 
to the effect that no person, partnership, corporation, or other entity 
performing functions pursuant to such contract, shall, in employing 
or assigning personnel to participate in the performance of any such 
function, whether in the United States or abroad, take into account 
the exclusionary policies or practices of any foreign government where 
such policies or practices are based upon race, religion, national origin, 
or sex. 

(3) The President shall promptly transmit reports to the Speaker 
of the House- of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate concerning any transaction in 
which any Ignited States person (as defined in section 7701(a) (30) of 
the Internal Revenue Code of 1954) is prevented by a foreign govern- 

s"® Sec. 204(b) (2) of the International Security Assistance and Arms Export Control Act 
of 1976 amended Sec. nOn(e') by strikinjr out tbe followinjr words after "covintrv" : ". and 
prior to the date be intends to give bis consent to tbe transfer, the President notifies 
tbe Speaker of tbe House of Rei)resentatives and tlie Committee on Foreijrn Relations 
of the Senate in writing of each intended consent, tbe justification for givinp: such 
consent, tlie defense article for which be intends to jrive bis consent to be so transferred, 
and tbe foreign country to which that defense article is to be transferred". 

"'•o For text, see page 712. 

•"'^i Subsection (g) was added by Sec. 302(a) of the International Security Assistance 
and Arms Export Control Act of 1976. 



20-818 O - 78 



90 

ment on the basis of rax^, religion, national origin, or sex, from par- 
ticipating in the furnishing of assistance under this chapter, or 
education and training under chapter 5, to any foreign country. Such 
reports shall include (A) a description of the facts and circumstances 
of any such discrimination, (B) the response thereto on the part of 
the United States or any agency or employee thereof, and (C) the 
result of such response, if any. 

(4) (A) Upon the request of the Committee on Foreign Relations 
of the Senate or the Committee on International Relations of the 
House of Representatives, the President shall, within 60 days after 
receipt of such request, transmit to both such committees a statement, 
prepared with the assistance of the Assistant Secretary of State for 
Human Rights and Humanitarian Affairs,^" with respect to the coun- 
try desi^rnated in such request, setting forth — 

(i) all the available information about the exclusionary policies 
or practices of the government of such country when such poli- 
cies or practices are based upon race, religion, national origin, or 
sex and prevent any such person from participating in a trans- 
action involving the furnishing of any assistance under this chap- 
ter or any education and training under chapter 5 ; 

(ii) the response of the United States thereto and the results 
of such response; 

(iii) whether, in the opinion of the President, notwithstanding 
any such policies or practices — 

(I) extraordinary circumstances exist which necessitate a 
continuation of such assistance or education and training 
transaction, and, if so, a description of such circumstances 
and the extent to which such assistance or education and 
training transaction should be continued (subject to such 
conditions as Congress may impose under this section), and 

(II) on all the facts it is in the national interest of the 
United States to continue such assistance or education and 
training transaction ; and 

(iv) such other information as such committee may request. 

(B) In the event a statement with respect to an assistance or train- 
ing transaction is requested pursuant to subparagraph (A) of this 
paragraph but is not transmitted in accordance therewith within 60 
days after receipt of such request, such assistance or training transac- 
tion shall be suspended unless and until such statement is transmitted. 

(C) (i) In the event a statement with respect to an assistance or 
training transaction is transmitted under subparagraph (A) of this 
paragraph, the Congress may at any time thereafter adopt a joint 
resolution terminating or restricting such assistance or training 
transaction. 

(ii) Any such resolution shall be considered in the Senate in accord- 
ance with the provisions of section 601(b) of the International Secu- 
rity Assistance and Arms Export Control Act of 1976.^*^ 

(iii) The ^erm "certification'', as used in section 601 of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under subparagraph (A) of this paragraph. 

3*2 Sec. 109(a) (4) of the Foreign Relations Authorization Act, Fiscal Year 1978 (91 Stat. 
846) substituted the title designation of Assistant Secretary of State in lieu of Coordinator. 
3*3 For text, see page 313. 



91 

Sec. 506. 34^ Special Authority.— (a) ^^^ (1) If the President deter- 
mines and reports to Congress in accordance with section 652 of this 
Act— 

(A) that an unforeseen emergency exists which requires 
immediate military assistance to a foreign country or inter- 
national organization ; 

(B) that a failure to respond immediately to that emergency 
will result in serious harm to vital United States security 
interests ; and 

(C) that the emergency requirement cannot be met under 
authority of the Arms Export Control Act or any other law 
except this section ; 

he may order defense articles from the stocks of the Department of 
Defense and defense services for the purposes of this part, subject to 
reimbursement .from subsequent appropriations made specifically 
therefor under subsection (b). 

(2) The total value of defense articles and defense services ordered 
under this subsection in any fiscal year may not exceed $67,500,000. 
The authority contained in this subsection shall be effective in any 
fiscal year only to the extent provided in an appropriation Act. 

(3) The President shall keep the Congress fully and currently 
informed of all defense articles and defense services ordered under 
this subsection. 

(b) The Department of Defense is authorized to incur, in applicable 
appropriations, obligations in anticipation of reimbursements in 
amounts equivalent to the value of such orders under subsection (a) of 
this section. Appiopriations to the President of such sums as may be 
necessary to reimburse the applicable appropriation, fund, or account 
for such orders are hereby authorized. 

Sec. 507.^^^ Restrictions on Military Aid to Latin America. — 
* * * [Repealed— 19731 

Sec. 508.^*^ Restrictions on Military Aid to Africa. — * * * 
[Repealed— 1973] 

Sec. 509.^^« Certification of Recipient's Capability.—* * * 
[Repealed— 1973] 

Sec. 510.^^^ Restrictions on Training Foreign Military Stu- 
dents.—* * * [Repealed— 1976] 

Sec. 511.^^^ Considerations in Furnishing Military Assistance. — 
Decisions to furnish military assistance made under this part shall 
be made in coordination with the Director of the United States Arms 



3<*22 use 2318. Former Sec. 510 was redesignated Sec. 506 by Sec. 201(j)(l) of the 
FAAct of 1967. 

"*^ Subsection (a) was amended by Sec. 102 of the International Security Assistance 
and Anns Export Control Act of 1976. It formerly read as follows : "(a) During the fiscal 
year 1975 the President may, if he determines it to be in the security interests of the 
United States, order defense articles from the stoclis of the Department of Defense and 
defense services for the purposes of part II, subject to subsequent reimbursement therefor 
from subsequent appropriations available for military assistance. The value of such 
amounts equivalent to the value of such orders under subsection (a) of orders under this 
subsection in the fiscal year 1975 shall not exceed $150,000,000." 

^ Sec. 12(b) (5) of the FAAct of 1973 repealed Sees. 507, 508, and 509. 

'*" Repealed by Sec. 106(b) of the International Security Assistance and Arms Export 
Control Act of 1976. 

C4S22 UPC 2.'',21d. Sec. 511 was added by Sec. 201(f) of the FAAct of 1971. Sec. 150(c) 
of Public Law 94-141. Foreign Relations Authorization Act, Fiscal Year 1976. struck out 
the words "take into account" and inserted in lieu thereof "be made in coordination with 
the Director of the United States Arms Control and Disarmament Agency and shall take 
Into account his opinion as to"'. 



92 

Control and Disarmament Agency and shall take into account his 
opinion as to whether such assistance will — 

(1) contribute to an arms race; 

(2) increase the possibility of outbreak or escalation of con- 
J3ict ; or 

(3) prejudice the development of bilateral or multilateral arms 
control arrangements. 

Sec. 512.^^^ Military Assistance Advisory Groups and Mis- 
sions—* * * [Kei)eal(Ml— 1978J 

Sec. 513 ^^" Military Assistance Authorizations for Thailand 
and Laos, and South Vietnam.-'^^^ — (a) After June 30, 1972, no mili- 
tary assistance shall be furnislied by the United States to Thailand 
directly or through any other foreign country unless that assistance is 
authorized under this Act or the Foreign Military Sales Act.^" 

(b) ^^^ After June 30. 1974, no military assistance shall be furnished 
by the United States to Laos directly or through any other foreign 
country unless that assistance is authorized under this Act or the 
Foreign Military Sales Act.^" 

(c)^^* After June 30, 1976, no military assistance shall be furnished 
by the United States to South Vietnam directly or through any other 
foreign country unless that assistance is authorized under this Act or 
the Foreign Military Sales Act.^" 

Sec. 514.^'"^ Stockpiling of Defense Articles for Foreign Coun- 
tries. — (a) No defense aiticle in the inventory of the Department of 
Defense which is set aside, reserved, or in any way earmarked or 
intended for future use by any foreign country may be made available 
to or for use by any foreign country unless such transfer is authorized 
under this Act or the Arms Export Control Act, or any subsequent 
corresponding legislation, and the value of such transfer is charged 
against funds authorized under such legislation or against the limita- 
tions specified in such legislation, as appropriate, for the fiscal period 
in which such defense article is transferred. For purposes of this 
subsection, "value" means the acquisition cost plus cratin"^, packing, 
handling, and transportation costs incurred in carrying out this section. 



3*0 Pec. 12(5) of the FAAct of 1973 repealed Sees. 512 and 514. 

3E0 22 use 2321f. Sec. 513 was added by Sec. 201(f) of the FAAct of 1971. 

351 Sec. 12(1) of the FAAct of 1974 Rnbstltuted the words "Thailand and Lraos, and 
Sonth Vietnam" in lieu of "Thailand and Laos". 

355 For text, see paee 273. 

353 Sec. 12(6) (B) of the FAAct of 1973 added subsection (b). 

8« Snbspction (c) was added by Sec. 12(2) of the FAAct of 1974. 

855 22 use 2321 h. Sec. 514 was amended by Sec. 103 of the International Security As- 
sistance and Arms Export Control Act of 1976. It formerly read: "(a) Notwithstanding 
any other provision of law, no funds, other than funds made available under this chapter 
or section 401(a) of Public Law 89-367 (80 Stat. 37). or any subsequent corresponding 
legislation, may be oblicrateri for the purpose of stockpiline any defense article or war 
reserve material, including the acnuisltion. storage, or maintenance of any war reserve 
equipment, secondary items, or munitions, if snc^ article or material is set aside, reserved, 
or In any way earmarked or intended for future use by any foreign country under this 
Act or such section. 

"(b) The cost of any such article or material set aside, reserved, or in anv way earmarked 
or intended by the Department of Defense for future use hy. f^^r or on »>ehaif of the country 
referred to in section 401(a)(1) of Public Law 89-367 (80 Stat. 37) sh'^ll be charged 
against the limitation specified in such section or any subsequent corresponding legislation, 
for the fiscal year in which such article or material is set aside, reserved, or otherwise 
earmarked or intended : and the cost of anv such article or material set aside, reserved or 
in any way earmarked or intended for future use by, for. or on behalf of any other 
foreign country shall be charged against funris authorized under this chapter or the fiscal 
year in which such article or material is set aside, reserved, or otherwise earmarked. 
No such article or material may be made available to or for i"^p bv «ny foremen country 
unless such article or material has been charged against the limitation speci^ed in such 
section, or any subsequent corresponding legislation, or against funds authorized under 
this chapter, as appropriate." 



93 

(b)(1) The value of defense articles to be set aside, earmarked, 
reserved, or intended for use as war reserve stocks for allied or other 
foreign countries (other than for purposes of the North Atlantic 
Treaty Organization) in stockpiles located in foreign countries may 
not exceed in any fiscal year an amount greater than is specified in 
security assistance authorizing legislation for that fiscal year. 

(2) The value of such additions to stockpiles in foreign countries 
shall not exceed $270,000,000 for the fiscal year 1978.^56 

(c) Except for stockpiles in existence on the date of enactment of 
the International Security Assistance and Arms Export Control Act 
of 1976 and for stockpiles located in countries which are members 
of the North Atlantic Treaty Organization, no stockpile may be 
located outside the boundaries of a United States military base or a 
military base used primarily by the United States. 

(d) No defense article transferred from any stockpile 'which is 
made available to or for use by any foreign country may be considered 
an excess defense article for the purpose of determining the value 
thereof. 

(e) The President shall promptly report to the Congress each 
new stockpile, or addition to an existing stockpile, described in this 
section of defense articles valued in excess of $10,000,000 in any fiscal 
year. 

Sec. 515.^" Overseas Management of Assistance and Sales Pro- 
grams. — (a) No military assistance advisory group, military mission, 
or other organization of United States military personnel performing 
similar military advisory functions under this Act or the Arms Export 
Control Act may operate in any foreign country unless specifically 
authorized by the Congress. The prohibition contained in this sub- 
section does not apply to regular units of the Armed Forces of the 
United States engaged in routine functions designed to bring about 
the standardization of military operations and procedures between 
the Armed Forces of the United States and countries which are mem- 
bers of the North Atlantic Treaty Organization or other defense 
treaty allies of the United States. 

(b) (1) In order to carry out his responsibilities for the manage- 
ment during the fiscal year 1978 of international security assistance 
programs conducted under this chapter, under chapter 5 of this part, 
or under the Arms Export Control Act, the President may assign 
members of the Armed Forces of the United States to perform neces- 
sary functions with respect to such programs in the countries speci- 
fied in section 504(a)(1) and in the Republic of Korea, Panama, 
Brazil, Morocco, Iran, Kuwait, and Saudi Arabia. Members of the 
Armed Forces assigned under this subsection shall have as their pri- 
mary functions logistics management, transportation, fiscal manage- 
ment, and contract administration of country programs. It is the sense 
of the Congress that advisory and training assistance in the countries 
specified above shall primarily be provided by personnel who are not 

^ Sec. 6 of the International Security Assistance Act of 1977 (91 Stat. 615) 
struck out the fij-ures for FY 1970 and 1977 (FY 1976 and 197T— $96,750,000 ; FY 1977— 
$125,000,000) and inserted the fijjures for FY 1978. 

357 22 T^SC 2321i. Sec. 515. as added by Sec. 16 of the FAAct of 1974 and amended by 
the International Security Assistance and Arms Export Control Act of 1976, was amended 
and restated by Sec. 7(a) of the Interjiational Security Assistance Act of 1977 (91 Stat. 
615). 



94 

assigned under this subsection and who are detailed for Ihnited periods 
to perform specific tasks. 

(2) The total number of members of the Armed Forces assigned 
under this subsection to each country specified in paragraph (1) of this 
subsection may not exceed the number justified to the Congress in the 
congressional presentation materials, unless the Committee on Foreign 
Relations of the Senate and the Committee on International Relations 
of the House of Representatives are so notified. 

(3) Members of the Armed Forces authorized to be assigned to 
Iran, Kuwait, and Saudi Arabia by paragraph (1) of this subsection 
may only be assigned to such countries on a fully rehnbursable basis 
under section 21 (a) of the Arms Export Control Act, except that this 
requirement shall apply only to the extent that the number of members 
of the Armed Forces assigned to each such country exceeds six. 

(c) The President may assign not to exceed three members of the 
Armed Forces to any country not specified in subsection (b)(1) to 
perform accounting and other management functions with respect to 
international security assistance programs conducted under this chap- 
ter, chapter 5 of this part, or under the Arms Export Control Act, 
except that not to exceed three additional members of the Armed 
Forces may be assigned to a country to perform such functions when 
specifically requested by the Chief of the Diplomatic Mission as nec- 
essary to the efficient operation of the Mission. 

(d) The total number of membei*s of the Armed Forces assigned 
to foreign countries under subsections (b) and (c) may not exceed 865 
for the fiscal year 1978. 

(e) Members of the Armed Forces assigned to a foreign country 
under subsection (b) or (c) shall serve under the direction and super- 
vision of the Chief of the United States Diplomatic Mission in that 
country. 

(f) Defense attaches may perform overseas manaijement functions 
described in this section only if the President determines that the 
performance of such functions by defense attaches is the most economic 
and efficient means of performing such functions. The President shall 
promptly report each such determination to the Speaker of the House 
of RepresentatiA'es and to the chairman of the Senate Committee on 
ForeinTi Relations and the chairman of the Senate Committee on 
Armed Services, together with a description of the number of person- 
nel involved and a statement of the reasons for such determination. 
The number of defense attaches performing overseas mpnaq^ement 
functions in a country under this subsection may not exceed the num- 
ber of defense attaches authorized to be assigned to that country on 
Decembpr 31, 1976. 

(g) The entire costs (including salaries of United States military 
personnel) of overseas management of international security assist- 
ance programs under this section shall be charged to or reimbursed 
from funds made available to carry out this chapter, including: any 
such costs which are reimbursed from charges for services collected 
from foreign governments pursuant to sections 21(e) and 43(b) of 
the Arms Export Control Act. The prohibition contained in subsec- 
tion (a) of this section and the numerical limitations contained in 
subsections (b) , (c) , and (d) of this section shall not apply to members 
of the Armed Forces performing services for specific purposes and 



95 

periods of time on a fiilly reimbursable basis under section 21(a) of 
the Arms Export Control Act. 

Sec. 516/ - Termination of Authority. — (a) Except to the extent 
that the Congress may, subsequent to the enactment of this section, 
authorize the furnishing of military assistance in accordance with this 
chapter to specified coimtries in specified amoimts, the authorities 
contained in this chapter (other than the authorities contained in 
sections 506. 514. and 515) may not be exercised after September 30, 
1977. except that such authorities shall remain available until 
September 30, 1980, to the extent necessary to carry out obligations 
incurred under this chapter on or before September 30, 1977. 

(b) Funds available to carry out this chapter shall be available 
notwithstanding the limitations contained in paragraph (2) of sec- 
tion 5 W ( a ) of this Act — 

(1) for the winding up of military assistance programs under 
this chapter, including payment of the costs of packing, crating, 
handling, and transporting defense articles furnished under this 
chapter and of related administrative costs : and 

(2) for costs incurred imder section 503(c) with respect to 
defense articles on loan to countries no longer eligible under 
section 504(a) for military assistance. 

Chapter 3 — Foreign Military Sales ^^ 

Sec. 521.- ■- Administration of Sales Programs Involving Defense 
Articles and Services.—* * * [Repealed— 1968] 
Sec. 522.-^ Sales from Stock.— * * * [Repealed— 1968] 
Sec. 52.3.^^ Procurement of Sales.— [Repealed— 1968] 
Sec. 524.^^- Reimbursements. — (a)^" Wlienever ftmds made avail- 
able for use under this pait have been or ^^^ are used to furnish military 
assistance on cash or credit terms, United States dollar repayments, 
including dollar proceeds derived from the sale of foreign currency 
repayments to any agency or program of the United States Govern- 
ment, receipts received from the disposition of evidences of indebted- 
ness and chargres (including fees and premiums) or interest col- 
lected '^"^ shall be credited to a separate fund account ^^^ and, shall be 
available until exi^rded solely for the purposes of financing sales and 
guaranties, including the overhead costs thereof ,^^^ and, notwithstand- 
ing any provision of law relating to receipts and credits accruing to 
the United States Government, repayment in foreign currency may 
be used to carry out this part. Such amounts of the appropriations 
made available under this part (including unliquidated balances of 
funds heretofore obligated for financing sales and guarantees) as may 



3, 22 use 2321J. Sec. 516 -was added by Sec. 105 of the International Security Assist- 
ance and Arm.< Export Control Act of 1»76. 

^The new chapter heading was a.^ded bv Sec. 201 <^o^ (2^ of the FA.\ct of 1967. 

*» Repealed bv Sec. 45(a) of the Foreign Militarv Sales Act. Public Law 90-629. 

»'-22 use I 2.'?44. Former Sec. 508 was redesignated Sec. 524 by Sec. 201(h)(1) of 
the FA Act of 1967. 

*^ Subsection designation "(a)" was added bv Sec. 201(h)(2) of the FAAct of 1967. 

» The words "have been or" were added by Sec. 201(e) (1) of the FAAct of 1965. 

^** The words to this ooint. be<Tinnine witli "receipts received from", were added by 
Sec. 201 (e) (2) of the FAArt of 1965. 

»5 Sec. 201(e)(3) of the FAAct of 1965 substituted the words "a separate fund ac- 
count" in lieu of '^he current applicable appropriation." 

*• ^ec. 201(e)(1) of the FAAct of 196.T su^^tiMted the words "financing sales and 
guaranties, including the overhead costs thereof" in lieu of "furnishing further military 
assistance on cash or credit terms". 



96 

be determined by the President shall be transferred to, and merged 
with the separate fund account. ^'^^ 

(b)^^^ (1) The special fund account established under subsection (a) 
of this section shall terminate as of the end of June 30, 10G8, or on such 
earlier date as may be selected by the President. 

(2) Upon the termination of such fund account pursuant to para- 
graph (1), all of the assets of such fund account (including loans and 
other payments receivable) shall be transferred to a special account in 
the Treasury, which special account shall be available solely for the 
purpose of discharging outstanding liabilities and obligations of the 
United States arising out of credit sales agreements entered into, and 
piaranties issued, under this part, prior to June 80, 1068. Any moneys 
m such special account in excess of the aggrep^ate United States dollar 
amount of such liabilities and obligations shall be transferred from 
time to time to the general fund of the Treasury. 

(3)3.9 * ** [Repealed— 1068] 

Sec. 525.^«« Guaranties.—* * * [Repealed— 1068] 

Chapter 4 — Security Supporting Assistance "° 



Note. — Section 202 of the Foreign Assistance Act of 1071 
transferred the former Chapter 4 of Part I governing support- 
ing assistance to its present location as Chapter 4 of Part II of 
the Act. Section 202(b) of the Foreign Assistance Act of 1071 
provides as follows: 

"Chapter 4 of part T of the Foreign Assistance Act of 1061 is 
hereby repealed. References to such chapter or any sections 
thereof shall hereafter be deemed to be references to chapter 4 
of part II of the Foreign Assistance Act of 1061, as added by 
subsection (a) of this section, or to appropriate sections thereof. 
All references to part I of tJie Foreign Assistance Act of 1061 
shall hereafter be deemed to be references also to chapter 4 of 
part II, and all references to part II of such Act shall be deemed 
not to include chapter 4 of such part II." 



Sec. 531.^^^ General Authority. — The President is authorized to 
furnish assistance to friendly countries, organizations, and bodies eli- 
gible to receive assistance under this Act on such terms and conditions 
as he may determine, in order to support or promote economic or 
political stability. Except for programs in southern Africa,^^^ the 
authority of this chapter shall not be used to furnish assistance to 
more than twelve countries in any fiscal year. In planning security 
supporting assistance programs intended for economic development, 
the President shall take into account to the maximum extent feasible 
the policy directions set forth in chapter 1 of part I of this Act.^^^ 

387 The last sentence was arided by Sec. 201(c) of the FAAct of 1966. 
3S8 Snbse^tion (h) was added bv Sec. 201 (h) C^) of t^e FAAct of 1967. 
2«9 Repealed by Sec. 45(a) of the Foreign Military Sales. Public Law 90-629. 

370 Chapter 4 was added bv Sec. 202(a) of the FAAct of 1971. 

371 22 use § 2346. Sec. 551 was added by Sec. 202(a) of the FAAct of 1971. 

372 The words to this point in this sentence were added by Sec. 8(a)(1) of the Inter- 
national Security Assistance Act of 1977 (91 Stat. 617). 

373 This sentence was added by Sec. 8(a) (2) of the International 'Security Assistance Act 
of 1977 (91 Stat. 617). 



97 

Sec. 532.^^* Authorization. — (a)(1) There are authorized to be 
appropriated to the Pi-esident to carry out the purposes of this chapter 
for the fiscal year 1978 not to exceed $1,890,000,000 of Avhich not less 
than the following amounts should be available only for the following 
countries : ^^^ 

Israel $785, 000, 000 

Egypt 750, 000, 000 

Jordan 93,000, 000 

Syria 90, 000, 000 

Lebanon 20, 000, 000 

Cyprus 15, 000, 000 

(2) Of the amount authorized to be appropriated by paragraph 
(1) for the fiscal year 1978 which is available for Israel, not less than 
$300,000,000 shall be available only for budgetary support on a grant 
basis. 

(b) Amounts appropriated under this section are authorized to re- 
main available until expended. 



Note. — Sec. 533 was originally added as United States Refund 
Claims by Sec. 202(a) of the FA Act of 1971. It was repealed 
by Sec. 13(2) of the FAAct of 1973. 



Sec. '533.^^^ Southern African Special Requirements Funds. — (a) 

(1) Of the funds authorized to be appropriated by section 532 for the 
fiscal year 1978, $80,000,000 shall be, available on^y for the countries of 
southern Africa to address the problems caused by the economic dis- 
location resulting from the conflict in that region, and for education 
and job training assistance for Africans from Namibia and Z mbabwe 
(Southern Rhodesia). ^^^ Such funds may be used to provide assistance 

"*22 use 2346a. Sec. 542, as added by Sec. 202(a) of the FAAct of 1971 and amended 

by Sec. 501(a) of the International Security Assistance and Arms Export Control Act of 
1976, was amended and restated bv Sec. 8(b) of the International Security Assistance 
Act of 1977 (91 Stat. 617). It formerly read as follows : 

"Sec. 532. Authorization. — (a) There is authorized to be appropriated to the President 
to carry out the purposes of this chapter for the fiscal year 1976 $1,766,200,000. of which 
not less than $65,000,000 shall be available only for Greece, $730,000,000 shall be avail- 
able only for Israel, and $705,000,000 shall be available only for Egypt, and for the fiscal 
year 1977 $1,860,000,000. of which not less than $785,000,000 shall be available only for 
Israel, not less than $750,000,000 shall be available only for Egypt, not less than $27,'550,- 
000 shall be available only for Zambia, and not less than $27,000,000 shall be available only 
for Zaire. Amounts appropriated under this section are authorized to remain available 
until expended. 

"(b)(1) None of the funds made available under this section for Zaire and Zambia 
may be used for military, guerrilla, or paramilitary activities in either such country or 
in any other country. 

"(2) Assistance furnished under this chapter to Zaire and Zambia for fiscal year 1977 
shall be counted for nurnoses of the limitation contained in the last sentence of section 
531 on the number of countries which may receive assistance under this chapter in any 
fiscal year." 

3^ FA Appropriations Act. 1978 : 

"Security supporting assistance : For necessary expenses to carrv out the provisions of 
sections 497. 531, and 533 of the Fore'pn Assistance Act of 19G1, as amended, and those 
provisions of section 903 of the Foreign Assistance Act of 1961 which pertain to the Sinai 
support mission, $2,202,200,000: Provided, That of the funf^s appropriated unr^er this 
paragraph. .15785,000,000 shall be allocated to Israel, $750,000,000 shall be allocated to 
Egypt, $93,000,000 shall be allocated to Jordan, and $90,000,000 shall be allocated to 
Syria. 

"Loan Allocation, Security Supporting Assistance: Of the new obligational authority 
appropriated under this Act for Securitv Supporting Assistance, not to exceed $856,800 000 
shall be available for grants : Provided, That of the amounts available for loans, not to 
exceed .«8n5,400.000 shall be available for loans with maturities in excess of thirty years, 
but not to exceed forty years, following the date on which funds were originally made 
available under such loans." 

7°o *'^' ^/?^o"^*^ added by Sec. 8(c) of the International Security Assistance Act of 1977 
(91 Stat. olo). 



98 

to African refugees and persons displaced by war and internal strife 
in southern Africa, to improve transportation links interrupted or 
jeopardized by regional political conflicts, and to provide trade credits 
for the purchase of United States products to those countries in the 
region adversely affected by blocked outlets for the'.r exports and by 
the overall strains of the world economy. 

(2) Of the funds made available under this section, not more than 
the following amounts may be made available for the following: 

Botswana $15, 000, 000 

Lesotho 15, 000, 000 

Swaziland 5, 000, 000 

Re^onal programs for education, training, and refugee assistance. 45, 000, 000 

(3) To the extent practicable consistent with the purposes speci- 
fied in paragraph (1), assistance under this section should be usel to 
meet the objectives set forth in sections 102 (c) and (d) and in other 
sections of chapter 1 of part I of this Act. 

(4) Before obligating any funds under this section, the President 
shall notify the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate with 
respect to the specific projects and programs for which such fimds 
will be used. 

(b) Of the funds made available under Fubsoct'on (a) of this sec- 
tion for regional programs, not to exceed $1,000,000 may be used by 
the President for the preparation of a comprehensive analysis of the 
development needs of southern Africa to enable the Congress to deter- 
mine what contribution United States foreign avssistance can make. 

(c)(1) None of the funds made available under this section may 
be used for military, guerrilla, or paramilitary activities in any 
country. 

(2) No assistance may be furnished under th^s section to Mozam- 
bique, Angola, Tanzania, or Zamba, except that the Presi^lent may 
waive this prohibition with respect to any such country if he deter- 
mines (and so reports to the Congress) that furnishing ?uch assistance 
to that country would further the foreign policy interests of the United 
States. 

(d) It is the sense of the Congress that the United States should 
support an internationally recognized constitutional settlement of the 
Rhodesian conflict leading promptly to majority rule based upon dem- 
ocratic principles and upholding basic human rights. The Congress 
declares its intent to support United States participation in a Zim- 
babwe Development Fund. The Congress intends to authorize the nec- 
essary appropriation when progress toward such an internationally 
recognized settlement would permit establishment of the Fund. 



377 



Chapter 5 — International Military Education and Training 

Sec. 541."8 General Authority.— The President is authorized to 
furnish, on such terms and conditions consistent with this Act as the 
President may determine (but whenever feasible on a reimbursable 

3" Chapter 5 w^^s added by Sec. 106(a) of the International Security Assistance and 
Arms Fixnort Ton^rol Act of 1976. 
'"8 22 use 2347. 



99 

basis), military education and training to military and related civilian 
personnel of foreign countries. Such training and education may be 
provided through — 

(1) attendance at military educational and training facilities 
in the United States (other than Service academies) and abroad; 

(2) attendance in special courses of instruction at schools and 
institutions of learning or research in the United States and 
abroad: and 

(3) observntion and orientntiort visits to military facilities and 
related acti\dties in the United States and abroad. 

Sec. 542.^^^ Authorization. — There are authorized to be appropri- 
ated to the President to carrv out the purposes of this chapter 
$31,000,000 for the fiscal year 1978.3«« After June 30, 1976, no training 
under this section may be conducted outside the United States unless 
the President has reported and justified such training to the Speaker 
of the House of Representatives and the Committee on Foreign 
Relations of the Senate. 

Sec. 543.^®^ Purposes. — Education and training activities con- 
ducted under this chapter shall be designed — 

(1) to encourage effective and mutually beneficial relations 
and increased understanding between the United States and for- 
eign countries in furtherance of the goals of international peace 
and security ; and 

(2) to improve the ability of participating foreign countries to 
utilize their resources, including defense articles and defense 
services obtained by them from the United States, with maximum 
effectiveness, thereby contributing to greater self-reliance by such 
countries. 

PART III 

Chapter 1 — General Provisions 

Sec. 601.^^2 Encouragement of Free Enterprise and Private 
Participation. — (a) The Congress of the United States recognizes the 
vital role of free enterprise in achieving rising levels of production 
standards of living essential to economic progress and development. 

Accordingly, it is declared to be the policy of the United States to 
encourage the efforts of other countries to increase the flow of in- 
ternational trade, to foster private initiative and competition, to en- 
courage the development and use of cooperatives, credit unions, and 
savings and loan associations, to discourage monopolistic practices, to 
improve the technical efficiency of their industry, agriculture, and com- 
merce, and to strengthen free labor unions; and to encourage the con- 
tribution of United States enterprise toward economic strength of 
less developed friendly countries, through private trade and invest- 

3™ 22 use 2347a. 

^ Sec. 10 of the International Security Assistance Act of 1977 (91 Stat. 619) struck 
ont the authorisations for FY 1976 and 1977 (FY 1976 — $27,t)O0,000 ; FY 19T7 — $30,200,- 
000) and added the authorization for FY 1978. 

FA Apnronrlations Act, 1978 : 

"International militRry education and training: For necessary expenses to carry out the 
provisions of section 541 of the Foreign Assistancee Act of 1961 as amended. $30,000,000 : 
Provided, That none of the funds appropriated under this paragraph shall be used to pro- 
vide internation-^l military education and training to the Government of Argentina." 

3a 22 use 2347b. 

S82 22 use 2351. 



100 

ment abroad, private participation in programs carried out under this 
Act (including}: the use of private trade channels to the maximum ex- 
tent practicable in carrying out such programs) , and exchange of ideas 
and technical information on the matters covered by this subsection, 
(b) In order to encourage and facilitate participation by private 
enterprise to the maximum extent practicable in achieving any of the 
purposes of this Act, the President shall — 

(1) make arrangements to find, and draw the attention of 
private enterprise to opportunities for investment and develop- 
ment in less developed countries and areas; 

{'2) ■^'' (>stablisli an (>tlVctive system lor obtaining adequate in- 
formation with respect to the activities of, and opportunities for, 
nongovernmental participation in the development process, and 
for utilizing such information in the planning, direction, and 
execution of programs carried out under this Act, and in the co- 
ordination of such programs with the ever-increasing develop- 
mental activities of nongovernmental United States institutions; 
(.'))'''' accelerate a piogiam of negotiating treaties foi- com- 
merce and trade, including tax treaties, which shall include provi- 
sions to encourage and facilitate the flow of private investment to, 
and its equitable treatment in, friendly countries and areas par- 
ticipating in programs under this Act ; 

(-i)'*" seek, c<)iisi>t(Mit with the national iutere.-t. compliance by 
other countries or areas with all treaties for commerce and trade 
and taxes, and take all reasonable measures under this Act or other 
authority to secure compliance therewith and to assist United 
States citizens in obtaining just compensation for losses sustained 
by them or payments exacted from them as a result of measures 
taken or imposed by any country or area thereof in violation of 
any sucli treaty ; •*^"' 

(5)^^^ to the maxinnnn extent practible ''^''^ carry out ])rograms 
of assistance through private channels and to the extent practica- 
ble in conjunction with local private or governmental participa- 
tion, including loans under the authority of section 201 to any 
individual, corporation, or other body of pei-sons: ^^^' 

(V))^^' take appropriate steps to discourage nationalization, ex- 
propriation, confiscation, seizure of ownership or control of private 
investment and discriminatory or other actions^ having the effect 
thereof, undertaken by countries receiving assistance under this 
Act, which divert available resources essential to create new 
wealth, employment, and productivity in those countries and 
otherwise impair the climate for new private investment essential 
to the stable economic growth and development of those 
countries: •^'*** 



"•^ Parajrraph (2) was added by Sec. 301(a) (1) of the FA Act of 1966. 

"'■^Sec. H01(a)(2) of the FAAct of 196G redesignated paragraphs (2), (3), (4), (5), and 
(G) as paragraphs (3), (4). (5), (C).and (7) respectively. 

•■■*« The word "and" which appeared at this point, was struck out by Sec. 301(a)(1) of 
the FAAct of 19G3. 

-'« Sec. .S01(a)(2) of the FAAct of 1963 substituted the words "to the maximum extent 
practicable" for the words "wherever appropriate", and substituted a semicolon for the 
period at the end of the paragraph. 

'^"Paragraphs (6) and (7). formerly paragraphs (5) and (6), were added by Sec. 301 
(a) (3) of the FAAct of 1063. 

»« Sec. 301(a) (3) of the FAAct of 196G struck out "and" at the end of paragraph (6) ; 
substituted the semicolon in lieu of a period at the end of paragraph (7), and added para- 
graph (8). 



101 

(7) utilize wherever practicable the services of United States 
private enterprise (including, but not limited to, the services of ex- 
perts and consultants in technical fields such as engineering) ; 

(8) utilize wherever practicable the services of United States 
private enterprise on a cost-plus incentive fee contract basis to 
provide the necessary skills to develop and operate a specific proj- 
ect or program of assistance in a less developed friendly country 
or area in any case in which direct private investment is not read- 
ily encouraged, and provide where appropriate for the transfer 
of equity ownership in such project or program to private investors 
at the earliest feasible time. 

(c)^^" (1) There is hereby establislicd an International Private In- 
vestment Advisory Council on Foreign Aid to be composed of such 
number of leading American business specialists as may be selected, 
from time to time, by the Administrator of the Agency for Interna- 
tional Development for the purpose of carrying out the provisions of 
this subsection. The members of the Council shall serve at the pleasure 
of the Administrator, who shall designate one member to serve as 
Chairman. 

(2) It shall be the duty of the Council, at the request of the Adminis- 
trator, to make recommendations to the Administrator with respect to 
particular aspects of programs and activities under this Act where pri- 
vate enterprise can play a contributing role and to act as liaison for 
the Administrator to involve specific private enterprises in such pro- 
grams and activities. 

(3) The members of the Advisory Council shall receive no compen- 
sation for their services but shall be entitled to reimbursement in ac- 
cordance with section 5703 of title 5 of the United States Code ^'-'^ for 
travel and other expenses incurred by them in the performance of their 
functions under this subsection. 

(4) The expenses of the Advisory Council shall be paid by the Ad- 
ministrator from funds otherwise available under this Act. 

(d)^°^ It is the sense of Congress that the Agency for International 
Development should continue to encourage, to the maximum extent 
consistent with the national interest, the utilization of engineering and 

•■'ss Subsection (c) was amended by Sec. 301(a)(4) if the FAAct of 196G. It formerly 
read as follows : 

"(c)(1) There Is hereby established an Advisory Committee on Private Enterprise in 
Foreign Aid. The Advisory Committee shall carry out studies and make recommendations 
for achieving the most elTective utilization of the private enterprise provisions of this 
Act to the head of the Agency charged with administering the programs under part I of 
this Act. who shall appoint the CoiTjmittee. 

"(2) Members of the Advisory Committee shall represent the public Interest and shall 
be selected from the business, labor and professional world, from the universities and 
foundations, and from among persons with extensive experience in government. The 
Advisory Committee shall consist of not more than nine members, and one of the members 
shall be designated as chairman. 

"(3) Members of the Advisory Committee shall receive no compensation for their 
services but shall be entitled to reimbursement in accordance with section 5 of the Admin- 
istrative Expenses Act of 1946 (5 U.S.C. 73b-2) for travel and other expenses incurred 
In attending meetings of the Advisory Committee. 

"(4) The Advisory Committee shall, If possible, meet not less frequently than once 
each month, shall submit such interim reports as the Committee finds advisable, and 
shall submit a final report not later than June 30. 1965, whereupon the Committee shall 
cease to exist. Such reports shall be made available to the public and to the Congress. 

(5) The expenses of the Committee, which shall not exceed $50,000, shall be paid 
from funds otherwise available under this Act." 

390 The words "5703 of title 5 of the United States Code" were substituted for "5 of the 
^niS ^^*^^*^^^'^ ^^r>enses Act of 1946 (5 U.S.C. 73i)-2)" by Sec. 301(a) of the FAAct of 
1967. 

="•1 Subsection (d) was added by Sec. 301(b) of the FAAct of 1964. 



102 

professional services of United States firms (including, but not limited 
to, any corporation, company, partnership, or other association) or by 
an affiliate of such United States firms in connection with capital proj- 
ects financed by funds authorized under this Act. 

Sec. 602.^^'^ Small Business. — (a) Insofar as practicable and to the 
maximum extent consistent with the accomplishment of the purposes 
of this Act, the President shall assist American small business to par- 
ticipate equitably in the fuinishing of commodities, defense articles, 
and services (including defense services) financed with funds made 
available under this Act — 

(1) by causing to be made available to suppliers in the United 
States, and particularly to small independent enterprises, infor- 
mation, as far in advance as possible, with respect to purchases 
proposed to be financed with such funds ; 

(2) by causing to be made available to prospective purchasers 
in the countries and areas receiving assistance under this Act 
information as to such commodities, aiticles, and services pro- 
duced by small independent enterprises in the United States; and 

(3) by providing for additional services to give small business 
better opportunities to participate in the furnishing of such com- 
modities, articles, and services financed with such funds. 

(b) There shall be an Office of Small Business, headed by a Special 
Assistant for Small Business, in such agency of the United States 
Goverinnent as the President may direct, to assist in carrying out the 
provisions of subsection (a) of this section. 

(c) The Secretary of Defense shall assure that there is made avail- 
able to suppliers in the United States, and particularly to small inde- 
pendent enterprises, information witli respect to purchase made by 
the Department of Defense pursuant to part II, such information to 
be furnished as far in advance as possible. 

Sec. 603.3®^ Shipping on United States Vessels. — The ocean 
transportation between foreign countries of conuuodities and defense 
articles purchased with foreign currencies made available or derived 
from fimds made available under this Act or the Agricultural Trade 
Development and Assistance Act of 1954, as amended ^^* (7 U.S.C. 
1691 et seq.), and transfers of fresh fruit and products thereof under 
this Act shall not be governed by the provisions of section 901(b) of 
the Merchant Marine Act of 1936, as amended ^^' (46 U.S.C. 1241), or 
any other law relating to the ocean transportation of commodities on 
United States flag vessels. 

Sec. 604.39*' Procurement. — (a) Funds made available under this 
Act may be used for procurement outside the United States only if the 
President determines that such procurement will not result in adverse 
effects upon the economy of the United States or the industrial mobili- 
zation base, with special reference to any areas of labor surplus or to 
the net position of the United States in its balance of payments with 
the rest of the world, which outweigh the economic or other advantages 
to the United States of less costly procurement outside the United 

a»2 22 U.S.C. § 2352. 
39^22 TT.S.C. § 2553. 
*»♦ For text, see Dajre 3.39. 
3« For text, see nage 238. 
386 22 U.S.C. § 2354. 



103 

States,'^^'^ and only if the price of any commodity procured in bulk is 
lower than the market price prevailing in the United States at the 
time of procurement, adjusted for differences in the cost of transpor- 
tation to destination, quality, and terms of payment.^^^ 

(b) No funds made available under this Act shall be used for the 
purchase in bulk of any commodities at prices higher than the market 
price prevailing in the United States at the time of purchase, adjusted 
for differences in the cost of transportation to destination, quality, and 
teims of payment. 

(c) In providing for the procurement of any ^^^ agricultural com- 
modity or product thereof available for disposition under the Agri- 
cultural Trade Development and Assistance Act of 1954, as amended,^*^" 
for transfer by grant under this Act to any recipient country in ac- 
cordance with its requirements, the President shall, insofar as practi- 
cable and when in furtherance of the purposes of this Act, authorize 
the procurement of such ^^^ agricultural commodity only within the 
United States except to the extent that such ^^^ agricultural commodity 
is not available in the United States in sufficient quantities to supply 
emergency requirements of recipients under this Act. 

(d) In providing assistance in the procurement of commodities in 
the United States, United States dollars shall be made available for 
marine insurance on such commodities where such insurance is placed 
on a competitive basis in accordance with normal trade practice pre- 
vailing prior to the outbreak of World War II : Provided^ That in the 
event a participating country, by statute, decree, rule, or regulation, 
discriminates against any marine insurance company authorized to do 
business in any State of the United States, then commodities pur- 
chased with funds provided hereunder and destined for such country 
shall be insured in the United States against marine risk with a com- 
pany or companies authorized to do a marine insurance business in any 
State of the United States. 

(e)"i No funds made available under this Act shall be used for the 
procurement of any agricultural commodity or product thereof outside 
the United States when the domestic price of such commodity is less 
than parity. 

^f ^402 ^Q funds authorized to be made available to carry out part I 
of this Act shall be used under any commodity import program to 
make any payment to a supplier unless the supplier has certified to the 
agency primarily responsible for administering such part I, such in- 
formation as such agency shall by regulation prescribe, including but 
not limited to, a description of the commodity supplied by him and 
its condition, and on the basis of such information such agency shall 
have approved such commodity as eligible and suitable for financing 
under this Act. 



'>iw<?rQ!^'%S'f,,^^^^Po^^^U.^^.l\?H^^AJ^^^"<^ ^6), the penultimate sentence of Sec. 
211(a), Sec. 237(k) and Sec. 251(b) (4) of this Act. 

•''«8 See also Sec. 604(b) of this Act. 

39" Sec. 301(b)(1) of the FAAct of 1966 struck out the word "surplus" which appeared 
before the word "agricultural". 

^"OThe words "or nmduct thereof available for disposition unrier the Agricultural Trade 
!r^^^A'^i"!"*A"J!?«^^?l^*^"''^ ^^^ o^ 1954. as amended," were added by Sec. 301(b)(1) of 
the FAAct of 1966. For text of the Agricultural Trade Development and Assistance Act. 
see nage 339. ' 

*«;^ Subsection (e) was added by Sec. 301(b) (2) of the FAAct of 1966. 

^o^ Subsection (f) was added by Sec. 301(a) of the FAAct of 1968. 



104 

Sec. 605/°^ Retention and Use of Certain Items and Funds/<>*— 

(a) Any commodities and defense articles prociiied to cany out this 
Act shall be retained by, or upon reimbui-sement, transferred to, and 
for the use of, such agency of the United States Government as the 
President may determine in lieu of being disposed of to a foreign 
country or international organization, whenever in the judgment of 
the President the best interests of the United States will be served 
thereby or whenever such retention is called for by concurrent resolu- 
tion. Any commodities or defense articles so retained may be disposed 
of without regard to provisions of law relating to the disposal of prop- 
erty owned by the United States Government, when necessary to pre- 
vent spoilage or wastage of such commodities or defense articles or to 
conserve the usefulness thereof. Funds realized from any disposal or 
transfer shall revert to the respective appropriation, fund, or account 
used to procure such commodities or defense articles or to the appro- 
priation, fund, or account currently available for the same general 
purpose. 

(b) Whenever commodities are transferred to the United States 
Government as repayment of assistance under this Act, such commodi- 
ties may be used in furtherance of the purposes and within the limita- 
tions of this Act. 

(^Qyo5 Pnn(|«5 realized as a result of any failure of a transaction fi- 
nanced under authority of part I of this Act to conform to the require- 
ments of this Act, or to applicable rules and regulations of the United 
States Government, or to the terms of any agreement or contract en- 
tered into under authority of part I of this Act, shall revert to the re- 
spective appropriation, fund, or account used to finance such transac- 
tion or to the appropriation, fund, or account currently available for 
the same general purpose. 

(d)*^^ Funds realized by the United States Government from the 
sale, transfer, or disposal of defense articles returned to the United 
States Government by a recipient country or international organiza- 
tion as no longer needed for the purpose for which furnished shall be 
credited to the respective appropriation, fund, or account used to pro- 
cure such defense articles or to the appropriation, fund, or account cur- 
rently available for the same general purpose. 

Sec. 606.^°*^ Patents and Technical Information. — (a) Whenever, 
in connection with the furnishing of assistance under this Act — 

( 1 ) an invention or discovery covered by a patent issued by the 
United States Government is practiced within the United States 
without the authorization of the owner, or 

(2) information, which is (A) protected by law, and (B) held 
by the United States Government subject to restrictions imposed 
by the owner, is disclosed by the United States Government or any 
of its officers, employees, or agents in violation of such restrictions, 

the exclusive remedy of the owner, except as provided in subsection 

(b) of this section, is to sue the United States Government for reason- 
able and entire compensation for such practice or disclosure in the 

*<»22 U.S.C. § 2355. 

*o* Sec. 301(a)(1) of the FAAct of 1965 substituted "Certain Items and Funds" for 
"Items". 

*<« Subsections (c) and (d) were added by Sec. 301(a)(2) of the FAAct of 1965. 
*<»22 U.S.C. § 2356. 



105 

district court of the United States for the district in which such owner 
is a resident, or in the Court of Claims, w^ithin six years after the cause 
of action arises. Any period during which the United States Govern- 
ment is in possession of a written claim under subsection (b) of this 
section before mailing a notice of denial of that claim does not count in 
computing the six years. In any such suit, the United States Govern- 
ment may plead any defense that may be pleaded by a private person 
in such an action. The last paragraph of section 1498 (a^ of title 28 of 
the United States Code shall apply to inventions and iniormation cov- 
ered by this section. 

(b) Before suit against the United States Government has been 
instituted, the head of the agency of the United States Government 
concerned mav settle and pay any claim arising under the circum- 
stances described in subsection (a) of this section. No claim may be 
paid under this subsection unless the amount tendered is accepted by 
the claimant in full satisfaction. 

(c) Funds appropriated pursuant to this Act shall not be expended 
by the United States Government for the acquisition of any drug 
product or pharmaceutical product manufactured outside the United 
States if the manufacture of such drug product or pharmaceutical 
product in the United States would involve the use of, or be covered 
by, an unexpired patent of the United States which has not previously 
been held invalia by an unappealed or unappealable judgment or 
decree of a court of competent jurisdiction, unless such manufacture 
is expressly authorized by the owner of such patent. 

Sec. 607.^°" Furnishing of Services and Commodities. — (a)*°^ 
Whenever the President determines it to be consistent with and in 
furtherance of the purposes of part I and within the limitations of 
this Act, any agency of the United States Government is authorized 
to furnish services and commodities on an advance-of-funds or reim- 
bursement basis to friendly countries, international organizations, 
the American Red Cross, and voluntary nonprofit relief agencies 
registered with and approved by the Advisory Committee on Voluntary 
Foreign Aid (including foreign voluntary nonprofit relief agencies so 
registered and approved when no United States voluntary nonprofit 
relief agency is available) .^^^ Such advances or reimbursements may be 
credited to the currently applicable appropriation, account, or fund of 
the agency concerned and shall be available for the purposes for which 
such appropriation, account, or fund is authorized to be used, under the 
following circumstances : 

( 1 ) Advances or reimbursements which are received under this 
section within one hundred and eighty days after the close of the 
fiscal year in which such services and commodities are delivered. 

(2) Advances or reimbursements received pursuant to agree- 
ments executed under this section in which reimbursement will 
not be completed within one hundred and eighty days after the 
close of the fiscal year in which such services and commodities are 
delivered : Provided^ That such agreements require the payment 

*o'22 U.S.C. § 2357. 

*<» Subsection designation "(a)" and subsection (b) were added by Sac. 301(b) of the 
FAAot of 1968. 

*<* Tlie parenthetical phrase was added by Sec. 122(a) of the International Development 
and Food Assistance Act of 1977 (91 Stat. 541). Subsection (b) of Sec. 122 further in- 
structed the President to issue regulations "governing registration with and approval by the 
Advisory Committee on Voluntary Foreign Aid of foreign nonprofit agencies." 



106 

of interest at the current rate established pursuant to section 2 
(b)(1)(B) of the Export-Import Bank Act of 1945 (59 Stat. 
52G), and repayment of such principal and interest does not 
exceed a period of three years from the date of signing of the 
agreement to provide the service : Provided further^ That funds 
available for this paragraph in any fiscal year shall not exceed 
$1,000,000 of the total funds authorized for use in such fiscal year 
by chapter 1 of part I of this Act, and shall be available only to 
the extent provided in appropriation Acts. Interest shall accrue 
as of the date of disbui-sement to the agency or organization 
providing such services."^'' 
(b) ^"^ No Government-owned excess property ?hall be made avail- 
able under this section, section 608, or otherwise in furtherance of the 
purposes of part I of this Act, unless, before the shipment of such 
property for use in a specified country (or transfer, if the property is 
already in such country), the agency administering such part I 
has approved such shipment (or transfer) and made a written 
determination — 

(1) that there is a need for such property in the quantity re- 
quested and that such property is suitable for the purpose 
requested ; 

(2) as to the status and responsibility of the designated end-user 
and his ability effectively to use and maintain such property; and 

(3) that the residual value, serviceability, and appearance of 
such property would not reflect unfavorably on the image of the 
United States and would justify the costs of packing, crating, 
handling, transportation, and other accessorial costs, and that the 
residual value at least equals the total of these costs. 

Sec. 608.^^^ Advance Acquisition of Property. — (a) It is the sense 
of the Congress that in furnishing assistance under part I excess per- 
sonal property should be utilized wherever practicable in lieu of the 
procurement of new items for I^'^nited States-assisted projects and pro- 
grams.^^^ The President is authorized to maintain in a separate ac- 
count, which shall, notwithstanding section 1210 of the General Appro- 
priation Act, 1951 (64 Stat. 765), be free from fiscal year limitations, 
$5,000,000 of funds made available under section 212. which may be 
used to pay costs (including personnel costs) *^^ of acquisition, storage, 
renovation and rehabilitation, packing, crating, handling, transporta- 
tion, and related costs of property classified as domestic or foreign 
excess property pursuant to the Federal Property and Administrative 
Services Act oiF 1949, as amended (40 U.S.C. 471 et seq.) , or other prop- 
erty, in advance of known requirements therefor for use in furtherance 
of the purposes of part I : Provided^ That the amount of property clas- 
sified as domestic excess property pursuant to the Federal Property 
and Administrative Services Act of 1949, as amended, held at any one 



*i<"Sec. 315 of P.L. 94-161 (89 Stat. 849) substituted the words at this point com- 
mencing with 'Such advances or reimbursements may be credited * * *" in lieu of 
"Such advances or reimbursements which are received under this section within one 
hundred and eiehty days after the close of the fiscal year in which such services and 
commodities are delivered, may be credited to the current applicable appropriation, 
account, or fund of the aeency concerned fnd shqll be available for the purposes for 
whif'h such appropriation, account, or fund is authorized to be used." 

411 2'2 U.S.C. § 2358. 

*^ This sentence ws added by Sec. 301(b) of the FAAct of 1967. 

*i3The words "(Including personnel costs)," were added by Sec. 301(c) of the FAAct 
of 1966. 



107 

time pursuant to this section shall not exceed $15,000,000 in total 
original acquisition cost. Property acquired pui-suant to the preceding 
sentence may be furnished (1) pui-suant to any provision of part 1 for 
which funds are authorized for the furnishing of assistance, in which 
case the separate account established pursuant to this section shall be 
repaid from .funds made available for such provision for all costs in- 
curred, or (2) pursuant to section 607, in which case such separate 
account shall be repaid in accordance with the provisions of that 
section for all costs incurred. 

(b) Property classified as domestic excess property under the Fed- 
eral Property and Administrative Services Act of 1949, as amended, 
shall not be transferred to the agency primarily responsible for ad- 
ministering part 1 for use pursuant to the provisions of part I or sec- 
tion 607 unless (1) such property is transferred for use exclusively by 
an agency of the United States Government, or (2) it has been deter- 
mined in the same manner as provided for surplus property in section 
203(j) of the Federal Property and Administrative Services Act of 
1949, as amended, that such property is not needed for donation pur- 
suant to that subsection. The foregoing restrictions shall not apply to 
the transfer in any fiscal year for use pursuant to the provisions of 
part I of amounts of such property with a total original acquisition 
cost to the United States Government not exceeding $45,000,000. 

Sec. 609.^1^ Special Account. — (a) In cases where any commodity 
is to be furnished on a grant basis under chapter 4 of part I under ar- 
rangements which will result in the accrual of proceeds to the recipient 
country from the sale thereof, the President shall require the recipient 
country to establish a Special Account, and 

(1) deposit in the Special Account, under terms and conditions 
as may be agreed upon, currency of the recipient country in 
amounts equal to such proceeds ; 

(2) make available to the United States Government such por- 
tion of the Special Account as may be determined by the President 
to be necessary for the reqiiirements of the United States Govern- 
ment: Provided, That such portion shall not be less than 10 per 
centum in the case of any country to which such minimum re- 
quirement has been applicable under any Act repealed by this Act ; 
and 

(3) utilize the remainder of the Special Account for programs 
agreed to by the United States Government to carry out the pur- 
poses for which new funds authorized by this Act would them- 
selves be available: Provided, That whenever funds from such 
Special Account are used by a country to make loans, all funds re- 
ceived in repayment of such loans prior to termination of assist- 
ance to such country shall be reused only for such purposes as 
shall have been agreed to between the country and the United 
States Government. 

(b) Any unencumbered balances of funds which remain in the 
Account upon termination of assistance to such country under this 
Act shall be disposed of for such purposes as may, subject to approval 
by Act of the Congress, be agreed to between such country and the 
United States Government. 



22 U.S.C. § 2359. 



108 

Sec. 610/^^ Transfer Between Accounts. — (a) ^^"^ Whenever the 
President determines it to be necessary for the purposes of this Act. 
not to exceed 10 per centum of the funds made available for any provi- 
sion of this Act (except funds made available pursuant to title TV of 
chapter 2 of part I) ^^^ may be transferred to, and consolidated with, 
the funds made available for any other provision of this Act, (except 
funds made available under chapter 2 of part II of this Act) ^^" and 
may be used for any of tlie purposes for which such funds may be 
used, except that the total in the provision for the benefit of which the 
transfer is made shall not be increased by more than 20 per centum 
of the amount of funds made available for such provision/^'' 

(b) *^''' The authority contained in this section and in sections 451, 
506,"*^° and 614 shall not be used to au<j^ment appropriations made avail- 
able pursuant to sections 636(g)(1) and 637 or used otherwise to 
finance activities which Jiormally would be financed from appropria- 
tions for administrative expenses. Not to exceed $9,000,000 *^^ of the 
funds appropriated under section 402 of this Act for any fiscal year 
may be transferred to and consolidated with appropriations made 
imder section 637(a) of this Act for the same fiscal year, subject to 
the further limitation that funds so transferred shall be available 
solely for a(hlitional administrative expenses incurred in connection 
with programs in Vietnam.*^^ 

(c) ^^^ Any funds which the President has notified Congress pursuant 
to section 653 that he intends to provide in military assistance to any 
country may be transferred to, and consolidated with, any other funds 
he has notified Congress pursuant to such section that he intends to 
provide to that country for development assistance purposes. 

Sec. 611.'-^ Completion of Plans and Cost Estimates. — (a) No 
agreement or grant which constitutes an obligation of the United 
States Government in excess of $100,000 under section 1311 of the 
Supplemental Appropriation Act, 1955, as amended ^^^ (31 U.S.C. 
200), shall be made for any assistance authorized under titles I, II, 
and VI ^^'^ of chapter 2 and chapter 4 of part I — 

(1) if such agreement or grant requires substantive technical 
or financial planning, until engineering, financial, and other plans 
necessary to carry out such assistance, and a reasonably firm 
estimate of the cost to the United States Government of providing 
such assistance, have been completed ; and 

*"22 use 2360. 

"'Subsection designation "(a)" and subsection "(b)" were added by Sec. 301(a) of the 
FAAct of 1962. 

«^Tlte parenthetical phrase was added by Sec. 301 of the FAAct of 1969. 

"8 The parenthetical phrase was added by Sec. 19(a) (1) of the FAAct of 1974. 

«» But see Sees. 201(c) and 251(c) of this Act. 

*2«Sec. 301(c) of the FAAct of 1967 substituted "506" for "510" and "$9,000,000" for 
"$5,000,000". 

^21 With the exception of the change noted in footnote 420, Sec. 301(d) of the FAAct of 
1966 amended this sentence, whicli formerly read as follows: "Not to exceed $1,400,000 
of the funds appropriated under section 402 of this Act after January 1, 1966, for the 
fiscal year 1966. may be transferred to and consolidated with appropriations made under 
section 637(a) of this Act for such fiscal year, subject to the limitations of subsection (a) 
of this section and subject to the further limitation that funds so transferred shall be 
available solely for administrative expenses incurred in connection with programs in the 
Republic of Vietnam." 

«2 Subsection (c) was added by Sec. 19(a) (2) of the FAAct of 1974. 

*2n22 U.S.C. § 2361. 

*2* For text, see natre 221. 

*25 Sec. 301(b) of the FAAct of 1962 substituted ", II, and VI" for "and II". 



109 

(2) if such agreement or grant requires legislative action with- 
in the recipient country, unless such legislative action may reason- 
ably be anticipated to be completed in time to permit the orderly 
accomplishment of the purposes of such agreement or grant. 

(b) Plans required under subsection (a) of this section for any 
water or related land resource construction project or program shall 
include a computation of benefits and costs made msof ar as practicable 
in accordance with the procedures set forth in the Memorandum of 
the President dated May 15, 1962,^^^ with respect to such computations. 

(c) To the maximum extent practicable, all contracts for construc- 
tion outside the United States made in comiection with any agreement 
or grant subject to subsection (a) of this section shall be made on a 
competitive basis. 

(d) Subsection (a) of this section shall not apply to any assistance 
furnished for the sole purpose of preparation of engineering, financial, 
and other plans. 

(e) ^^'^ In addition to any other requirements of this section, no as- 
sistance authorized under titles 1, II, or VI of chapter 2 or chapter 4 
of part I of this Act shall be furnished with respect to any capital 
assistance project estimated to cost in excess of $1,000,000 until the 
head of the agency primarily responsible for administering part I of 
the Act has received and taken into consideration a certification from 
the principal officer of such agency in the country in which the project 
is located as to the capability of the country (both financial and human 
resources) to effectively maintain and utilize the project taking into 
account among other things the maintenance and utilization of proj- 
ects in such country previously financed or assisted by the United 
States. 

Sec. 612.^28 Use of Foreign Currencies. — (a) ^^^ Except as other- 
wise provided in this Act or other Acts, foreign currencies received 
either (1) as a result of the furnishing of nonmilitary assistance 
under the Mutual Security Act of 1954, as amended, or any Act re- 
pealed thereby and unobligated on the date prior to the effective 
date of this Act, or (2) on or after the effective date of this Act, as 
a result of the furnishing of nonmilitary assistance under the Mutual 
Security Act of 1954, as amended, or any Act repealed hereby, or 
(3) as a result of the furnishing of assistance under part I. which are 
in excess of the amounts reserved under authority of section 105(d) 
of the Mutual Educational and Cultural Exchange Act of 1961 *^^ or 
any other Act relating to educational and cultural exchanges, may be 
sold by the Secretary of the Treasury to agencies of the United States 
Government for payment of their obligations outside the United 
States, and the United States dollars received as reimbursement shall 
be deposited into miscellaneous receipts of the Treasury. Foreign 
currencies so received which are in excess of the amounts so reserved 
and of the requirements of the United States Government in payment 

<26 Spc. 301(c) of the FAAct of 1963 substituted the words "the Memorandum of Ihe 
Presifient dated May 15. 1962." for the words "circular A-47 of the Bureau of the Budget". 
This Memorandum of the President, together with related papers is contained in Senate 
Document 97. 87th Congress, 2d Session, and in Annex B of AID M.O. 1221.2, October 1, 
1964. 

*" Subsection (e) was added bv 'Sec. 301(d) of the FAAct of 1967. 

4M 22 use § 2362. 

*2» Subsection designation "(a)" was added by Sec. 301(d) (1) of the FAAct of 1963. 

*^ 22 use § 2455. For text see p. 717. 



no 

of its obligations outside the United States, as such requirements may 
be determined from time to time by the President, shall be available 
for the authorized purposes of pai*t I in such amounts as may be 
specified from time to time in appropriation Acts/-^^ 

(b)^*^ Any Act of (\)n<rress niakin<r appropiiations to carry out 
programs under this or any other Act for United States operations 
abroad is hereby authorized to provide for the utilization of United 
States-owned excess foreign currencies to carry out any such opera- 
tions authorized by law. 

*^^ As ust'd in this subsection, the term "excess foreign currencies" 
means foreign currencies or credits owned by or owed to the United 
States which are, under applicable agreements with the foreign coun- 
try concerned, available for the use of the United States Government 
and are determined by the President to be excess to the normal require- 
ments of departments and agencies of the United States for such cur- 
rencies or credits and are not prohibited from use under this subsec- 
tion by an agreement entered into with the foreign country concerned. 

The President shall take all appropriate steps to assure that, to the 
maximum extent possible. United States-owned foreign currencies are 
utilized in lieu of dollars. Dollar funds made available pursuant to 
this Act shall not be expended for goods and services when United 
States-owned foreign currencies are available for such purposes unless 
the administrative official approving the voucher certilies as to the rea- 
son for the use of dollars in each case.''-^'* 

(c)'*^'' In addition to funds otherwise available, excess foreign cur- 
rencies, as defined in subsection (b), may be made available to friendly 
foreign governments and to private, nonprofit United States organi- 
zations to carry out voluntary family planning programs in countries 
which request such assistance. No such program shall be assisted unless 
the President has received assurances that in the administration of 
such program the recipient will take reasonable precautions to insure 
that no person receives any family planning assistance or supplies un- 
less he desires such services. The excess foreign currencies made avail- 
able under this subsection shall not, in any one year, exceed 5 per 
centum of the aggregate of all excess foreign currencies. As used in 
this subsection, the term "voluntary family planning program" in- 
cludes, but is not limited to, demographic studies, medical and psycho- 
logical research, personnel training, the construction and staffing of 
clinics and rural health centers, specialized training of doctors and 
paramedical personnel, the manufacture of medical supplies, and the 
dissemination of family planning information, medical assistance, and 
supplies to individuals who desire such assistance. 

*^ FA Apnropriations Act. 1978: "For ne'^es<<arv expenses to carry OMt the nrovjslons 
of section 612, $400,000. in foreign currencies which the Treasury Department declares 
to be excess to the normal reauirements of the United Sta+es." 

*32 Subsection (c) was added by Sec. 301(c) of the FAAct of 1964. Sec. 301(b) of the 
FAAct of 1925 redesignated subsection (c) as subsection (b). Former subsection (b) was 
redesienated subsection (t) of Sec. 104 of the Agricultural Trade Development and 
Assistance Act of 1954. as amended (P.L. 480). and was also amended by Sec. 2 of P.L. 
88-638 (1964 Amendments to the Agricultural Trade Development and Assistance Act 
of 1954). The Agricultural Trade Development and Assistance Act of 1954, as amended, 
was amended by P.L. 89-808 (Food for Peace Act of 1966) and Sec. 103 (m) is comparable 
to former Sec. 104 (t). 

*« The first sentence of this pnracranh was stmrk o'lt by Sec. 301(b) of the FAAct of 
1965. It read as follows : "The President shall take all appropriate steps to assure that, 
to the maximum extent possible. United States-owned excess foreign currencies are utilized 
in lieu of dollars." 

*3*This paragraph was adfied bv Sec. 301(b) of the FAAct of 1965. 

*35 Subsection (c) was added by Sec. 301(e) of the FAAct of 1966. 



Ill 

(d)*^^ In furnishing assistance under this Act to the government 
of any country in which the United States owns excess foreign cur- 
rencies as defined in subsection (b) of this section, except those cur- 
rencies generated under the Agricultural Trade Development and As- 
sistance Act of 1954, as amended,*^^ the President shall endeavor to 
obtain from the recipient country an agreement for the release, on such 
terms and conditions as the President shall determine, of an amount of 
such currencies up to the equivalent of the dollar value of assistance 
furnished by the United States for programs as may be mutually 
agreed upon by the recipient country and the United States to carry 
out the purposes for which new funds authorized by this Act would 
themselves be available. 

Sec. 613.''^^ Accounting, Valuation,, Reporting, and Administra- 
tion of Foreign Currencies.*^® — (a) Under the direction of the Presi- 
dent, the Secretary of the Treasury shall have responsibility for valua- 
tion and central accounting with respect to foreign credits (including 
currencies) owed to or owned by the United States. In order to carry 
out such responsibility the Secretary shall issue regulations binding 
upon all agencies of the Government. 

(b) The Secretary of the Treasury shall have sole authority to 
establish for all foreign currencies or credits the exchange rates at 
which such currencies are to be reported by all agencies of the 
Government. 

(c) Each agency or department shall report to the Secretary of the 
Treasury an inventory as of June 30, 1961, showing the amount of all 
foreign currencies acquired without payment of dollars on hand of 
each of the respective countries, and the Secretary of the Treasury 
shall consolidate these reports as of the same date and submit to the 
Congress this consolidated report broken down by agencies, by coun- 
tries, by units of foreign currencies and their dollar equivalent. There- 
after, semiannually, similar reports are to be submitted by the agencies 
to the Treasury Department and then presented to the Congress by the 
Secretary of the Treasury. After submission of the reports required 
to reflect inventories as of December 31, 1975, inventories shall be 
reported as of September 30, 1976, and semiannually thereafter.**^ 

(d) **^ In cases where assistance is to be furnished to any recipient 
country in furtherance of the purposes of this or any other Act on a 
basis which will result in the accrual of foreign currency proceeds to 
the United States, the Secretary of the Treasury shall issue regulations 
requiring that agreements, in respect of such assistance, include pro- 
visions for the receipt of interest income on the foreign currency 
proceeds deposited in authorized depositories: Provided^ That 
whenever the Secretary of State determines it not to be in the national 
interest to conclude arrangements for the receipt of interest income 
he may waive the requirement thereof: Provided further^ That the 
Secretary of State, or his delegate, shall promptly make a complete 

*» Subsection (d) was added by Sec. 302 of the FA Act of 1969. 

*^ For text, see page 339. 

"8 22 U.S.C. § 2363. 

*™Sec. 301(c)(1) of the FAAct of 1965 substituted "Accounttng, Valuation, Report- 
ing. AND Administration of Foreign Currencies" for "Accounting, Valuation, and 
Reporting of Foreign Currencies". 
/^This sentence was added by Sec. 4-6 of the Fiscal Year Adjustment Act (Public Law 

"1 Subsection (d) was added by Sec. 301(c) (2) of the FAAct of 1»65. 



112 

report to the Congress on each such determination and the reasons 
therefor. 

Sec. 614/'^ Special Authorities. — (a) The President may author- 
ize in each fiscal year the use of funds made avaihible for use under 
this Act and tlie furnishing]: of assistance under section r)0() ^^^ in a total 
amount not to exceed $250,000,000 and the use of not to exceed 
$100,000,000 of foreign currencies accruing imder this Act or any 
other law without re<>:ard to the requirements of this Act,"*^* any law 
relating to receipts and credits accruing to the United States, any 
Act appropriating funds for use under this Act, or the Mutual Defense 
Assistance Control Act of 1951 ''' (22 U.S.C. Kill et seq.), in fui-ther- 
ance of any of the purposes of such Acts, wlien the President deter- 
mines that such authorization is important to the security of the 
United States. Not more than $50,000,000 of the funds available under 
this subsection may be allocated to any one country in any fiscal year. 
The limitation contained in the preceding sentence shall not apply 
to any country which is a victim of active Communist or Communist- 
suppoited aggression.''^" The authority of this section shall not be used 
to waive the limitations on transfers contained in section 610(a) of 
this Act.''^^ 

(b) Whenever the President determines it to be important to the 
national interest, he may use funds available for the purposes of 
chapter 4 of part I in order to meet the responsibilities or objectives 
of the United States in Germany, including West Berlin, and without 
regard to sucli provisions of law as he determines should be disre- 
garded to achieve this purpose. 

(c) The President is authorized to use amounts not to exceed 
$50,000,000 of the funds made available under this Act pursuant to 
his certification that it is inadvisable to specify the nature of the use 
of such funds, which certification shall be deemed to be a sufficient 
voucher for such amounts.^^^ The President shall promptly and fully 
inform the Speaker of the House of Representatives and the chairman 
and ranking minority member of the Conunittec on Foreign Relations 
of the Senate of each use of funds under this subsection.'*^^ 

Sec. 615.^^^ Contract Authority. — Provisions of this Act authoriza- 
ing the appropriation of funds shall be construed to authorize the 
granting m any appropriation Act of authority to enter into contracts, 
within the amounts so authorized to be appropriated, creating obliga- 
tions in advance of appropriations. 

Sec. 616.^5^ Availability of Funds. — Except as otherwise provided 
in this Act, funds shall be available to carry out the provisions of this 
Act as authorized and appropriated to the President each fiscal year. 

Sec. 617.^°^ Termination of Assistance. — Assistance under any 
provision of this Act may, unless sooner terminated by the President, 
be terminated by concurrent resolution. Funds made available under 

''*2 22 U.S.C. § 2364. 

-»« Sec. 301(e) of the FAArt of lofi? substituted "506" for "510". 

*«But see Sees. 201(c) and 251(c), 610(b), 620 (f), (i), and (k) of this Act. 

"^ For text, see page 231. 

*46 The last sentence was added by Sec. 301 (f ) of the FAAct of 1966. 

**^ This sentence was ndded bv Sec. 19(b) of t^'e FAAct of 1974. 

<« See also Sees. 624(d) (7) and 636(a) (8) of this Act. 

^«The last sentence was added by Sec. 30(g) of the FAAct of 1966. 

*50 22 U.S.C. § 2365. 

*5i22 U.S.C. § 2366. 

*52 22 U.S.C. § 2367. 



113 

this Act shall remain available for a period not to exceed eight *^^ 
months from the date of termination of assistance under this Act for 
the necesary expenses of winding up programs related thereto. 

Sec. 618.^5^ Use of Settlement Receipts.— United States dollars 
directly paid to the United States under the Agreement Between the 
United States of America and Japan Regarding the Settlement of 
Postwar Economic Assistance to Japan *^^ may be appropriated or 
otherwise made available to the President in any appropriation Act, 
within the limitations of part 1 of this Act, to carry out the provisions 
of that part. 

Sec. 619.^^® Assistance to Newly Independent Countries. — 
Assistance under part 1 of this Act to newly independent countries 
shall, to the maxinmm extent appropriate in the circumstances of each 
case, be furnished through multilateral organizations or in accordance 
with nmltilateral plans, on a fair and equitable basis with due regard 
to self-help. 

Sec. 620.^" Prohibitions Against Furnishing Assistance.*^® — 
(a) (1)*^^ No assistance shall be furnished under this Act to the pres- 
ent government of Cuba/^'^ As an additional means of imple- 
menting and carrying into effect the policy of the preceding sentence, 
the President is authorized to establish and maintain a total embargo 
upon all trade between the United States and Cuba. 

(2)461 j^^xcept as may be deemed necessary by the President in the 
interest of the United States, no assistance shall be furnished under 
this Act to any government of Cuba, nor shall Cuba be entitled to 
receive any quota authorizing the importation of Cuban sugar into the 
United States or to receive any other benefit under any law of the 
United States, until the President determines that such government 
has taken appropriate steps according to international law standards 

*^ Sec. 14 of the FAAct of 1973 substituted the word "eight" in lieu of the word 
"twelve". 

*5*22 U.S.C. § 2368. Sec. 301(c) of the FAAct of 1962 struck out former Sec. 618, which 
related to economic assistance to Latin America. 
*^TIAS Document No. 5154. 
*56 22 U.S.C. § 2369. 
*57 22 U.S.C. § 2370. 

♦^ Sec. 301(d)(1) of the FAAct of 1965 substituted "Prohibitions Against Furnish- 
ing Assistance. — " for "Prohibitions Against JurniShing Assistance to Cuba and 
Certain Other Countries. — " But see Sees. 491(b) and 664 of this Act. 

*59Sec. 301(e)(1)(A) of the FAAct of 1963 inserted "(1)" after subsection (a). 
«" The phrase, " ; nor shall any such assistance be furnished to any country which 
furnishes assistance to the present government of Cuba unless the President determines 
that such assistance is in the national interest of the United States", which formerly 
appeared at this point, was struck out by Sec. 123(a)(1) of the International Develop- 
ment and Food Assistance Act of 1977 (91 Stat. 541). 

*6i Paragraphs (2) and (3) were added by Sec. 301(e)(1)(B) of the FAAct of 1963. 
Paragraph (3) was subsequently repealed by Sec. 123(a)(2) of the International Develop- 
ment and Food Assistance Act of 1977 (91 Stat. 541). It formerly read as follows : 

"(3) No funds authorized to be made available under this Act (except under 
section 214) shall be used to furnish assistance to any country which has failed 
to take appropriate steps, not later than 60 days after the date of enactment of the 
Foreign Assistance Act of 1963 — 

"(A) to prevent ships or aircraft under its registry from transporting to Cuba 
(other than to United States installations in Cuba) — 
"(i) any items of economic assistance, 

"(ii) any items which are, for the purposes of title I of the Mutual Defense 
Assistance Control Act of 1951, as amended, arms, ammunition, and imple- 
ments of war. atomic energy materials, petroleum, transportation materials 
of strategic value, or items of primary strategic significance used in the 
production of arms, ammunition, and implements of war. or 

"(iii) any other equipment, materials, or commodities, so long as Cuba 
is governed by the Castro regime ; and 
"(B) to prevent ships or aircraft under its registry from transporting any 
equipment, materials, or commodities from Cuba (other than from United States 
installations in Cuba) so long as Cuba is governed by the Castro regime." 



114 

to return to United States citizens, and to entities not less than 50 per 
centum beneficially owned by United States citizens, or to provide 
equitable compensation to such citizens and entities for property taken 
from such citizens and entities on or after January 1, 11)51), by the 
Government of Cuba. 

(b) No assistance shall be furnished under this Act to the govern- 
ment of any country unless the President determines that such country 
is not dominated or controlled by the international Communist 
movement. 

(c)^^2 ^Q assistance shall be provided under this Act to the govern- 
ment of any country which is indebted to any United States citizen or 
person for goods or services furnished or ordered where (i) such 
citizen or person has exhausted available legal remedies, which shall 
include arbitration, or (ii) the debt is not denied or contested by such 
government, or (iii) such indebtedness arises under an unconditional 
guaranty of payment given by such government, or any predecessor 
govenimenl, directly or indirectly, through any controlled entity : 
Provided, That the President does not find such action contrary to the 
national security. 

(d) No assistance shall be furnished imder section 201 of this Act 
for construction or operation of any productive enterprise in any 
country where such enterprise will compete with United States enter- 
prise unless such country has agreed that it will establish appropriate 
procedures to prevent the exportation for use or consumption in the 
United States of more than 20 per centum of the amiual production of 
such facility during the life of the loan. In case of failure to imple- 
ment such agreement by the other contracting party, the President is 
authorized to establish necessary import controls to effectuate the 
agreement. The restrictions imposed by or pui-suant to this subsection 
may be waived by the President where he determines that such waiver 
is in the national security interest. 

^g^463 (1)464 'pjjg President shall suspend assistance to the govern- 
ment of any country to which assistance is provided under this or any 
other Act when the government of such country or any government 

«2 Subsection (c) was amended by Sec. 301(d) (2) of the FAAct of 1962. It formerly read 
as follows : 

"(c) No assistance shall be provided under this Act to the government of any country 
which is indebted to any United States citizen for goods or services furnished, where such 
citizen has exhausted available legal remedies and the debt is not denied or contested by 
such government." 

*«3 Subsection (e) was added by Sec. 301(d)(3) of the FAAct of 1962 and was amended 
by Sec. 301(e) (2) of the FAAct of 1963 and by Sees. 301(d) (1) and (2) of the FAAct of 
1964. As originally enacted. It read as follows : 

"(e) The President shall suspend assistance to the government of any country to which 
assistance is provided under this act when the government of such country or any govern- 
mental agency or subdivision within such country on or after January 1, 1962 — 

"(1) has nationalized or expropriated or seized ownership or control of property 
owned by any United States citizen or by any corporation, partnership, or association 
not less than 50 per centum beneficially owned by the United States citizens, or 

"(2) has imposed or enforced discriminatory taxes or other exactions, or restrictive 
maintenance or operational conditions, which have the effect of nationalizing, expro- 
priating, or otherwise seizing ownership or control of property so owned, 
and such country, government agency or government subdivision fails within a reasonable 
time (not more than six months after such action or after the date of enactment of this 
subsection, whichever is later) to take appropriate steps, which may include arbitration, to 
discharge its obligations under international law toward such citizen or entity, including 
equitable and speedy compensation for such property in convertible foreign exchange, as 
required by international law, or fails to take steps designed to provide relief from such 
taxes, exactions, or conditions, as the case may be, and such suspension shall continue until 
he is satisfied that appropriate steps are being taken and no other provision of this Act 
shall be construed to authorize the President to waive the provisions of this subsection." 
*^ Paragraph designation "(1)" was added by Sec. 301(d) CD of the FAAct of 1964. 



115 

agency or subdivision within such country on or after January 1, 

196^— . , . , , . 

(A)*^' has nationalized or expropriated or seized ownership or 
control of property owned by any United States citizen or by any 
corporation, partnership, or association not less than 50 per cen- 
tum beneficially owned by United States citizens, or 

(B)*^^ has taken steps to repudiate or nullify existing contracts 
or agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum beneficially 
owned by United States citizens, or 

(C)*^^ has imposed or enforced discriminatory taxes or other 
exactions, or restrictive maintenance or operational conditions, or 
has taken other actions, which have the effect of nationalizing, 
expropriating, or otherwise seizing ownership or control of prop- 
erty so owned, 
and such country, government agency, or government subdivision fails 
within a reasonable time (not more than six months after such action, 
or, in the event of a referral to the Foreign Claims Settlement Com- 
mission of the United States within such period as provided herein, 
not more than twenty days after the report of the Commission is 
received) to take appropriate steps, which may include arbitration, to 
discharge its obligations under international law toward such citizen 
or entity, including speedy compensation for such property in con- 
vertible foreign exchange, equivalent to the full value thereof, as 
reo^uired by international law, or fails to take steps designed to provide 
relief from such taxes, exactions, or conditions, as the case may be ; and 
such suspension shall continue until the President is satisfied that ap- 
propriate steps are being taken, and the provisions of this subsection 
shall not be waived with respect to any country unless the President 
determines and certifies that such a waiver is important to the national 
interests of the United States. Such certification shall be reported im- 
mediately to Congress.^®® 

Upon request of the President (within seventy days after such 
action referred to in subparagraphs (A), (B), or (C) of paragraph 
(1)*^^ of this section), the Foreign Claims Settlement Commission 
of the United States (established pursuant to Reorganization Plan 
No. 1 of 1954, 68 Stat. 1279) is hereby authorized to evaluate expro- 
priated property, determining the full value of any property national- 
ized, expropriated, or seized, or subject to discriminatory or other 
actions as aforesaid, for purposes of this subsection and to render an 
advisory report to the President within ninety days after such re- 
quest. Unless authorized by the President, the Commission shall not 
publish its advisory report except to the citizen or entity owning such 
property. There is hereby authorized to be appropriated such amount, 
to remain available until expended, as may be necessary from time to 
time to enable the Commission to carry out Expeditiously its functions 
under this subsection. 



<«5 Sec. 301 (fi) (2^ of the FAArf of 1964 redesignated subparagraphs (1), (2), and (3) 
as subparagraphs (A). (B).and (C). respectively. 

«« The weds to this nr.int. beginning with "the provisions of this subsection • * *" were 
substituted in lieu of "no other provision of this Act shall be construed to authorize the 
President to waive the provisions of this subsection," by Sec. 15 of the FAAct of 1973. 

*«^ Sec. ,301 (d) (3) of the F^Art of 19fi4 s"bstit-'te'i the worf«s "subparagraphs (A), (B). 
or (C) of paragraph (1)" for the words "paragraphs (1), (2), or (3)", 



116 

(2)468 Notwithstanding any other provision of law, no court in the 
United States shall decline on the ground of the federal act of state 
doctrine to make a determination on the merits giving eflfect to the 
principles of international law in a case in which claim of title or 
other right to property "^^ is asserted by any party including a foreign 
state (or a party claiming through such state) based upon (or traced 
through) a confiscation or other taking after January 1, 1959, by an 
act of that state in violation of the principles of international law, 
including the principles of compensation and the other standards set 
out in this subsection : Provided^ That this subparagraph shall not be 
applicable (1) in any case in which an act of a foreign state is not 
contrary to international law or with respect to a claim of title or 
other right to property actjuired pursuant to an irrevocable letter of 
credit of not more than 180 days duration issued in good faith prior 
to the time of the conliscation or other taking, or (2) in any case with 
respect to which the President determines that application of the act of 
state doctrine is required in that particular case by the foreign policy 
interests of the United States and a suggestion to this ctfect is filed on 
his behalf in that case with the court.'*^^ 

(f)*'^ No assistance shall be furnished under this Act, as amended, 
(except section 214(b)) to any Communist country. This restriction 
may not be waived pursuant to any authority contained in this Act 
unless the President finds and promptly reports to Congress that: (1) 
such assistance is vital to the security of the United States; (2) the 
recipient country is not controlled by the international Communist 
conspiracy; and (3) such assistance will further promote the inde- 
pendence of the recipient country from international communism. 
For the purposes of this subsection, the phrase ''Communist country'' 
shall include specifically, but not be limited to, the following countries: 

Peoples Republic of Albania, 

Peoples Republic of Bulgaria, 

Peoples Republic of China, 

Czechoslovak Socialist Republic, 

German Democratic Republic (East Germany), 

Estonia, 

Hungarian Peoples Republic, 

Latvia, 

Lithuania, 

North Korean Peoples Republic, 

North Vietnam, 

Outer Mongolia -Mongolian Peoples Republic, 

Polish Peoples Republic, 

Rumanian Peoples Republic, 

Tibet, 

Federal Peoples Republic of Yugoslavia, 

Cuba, and 

Union of Soviet Socialist Republics (including its captive con- 
stituent republics ).*^^ 



^•^ Paragraph (2) was added by Sec. 301(d)(4) of the FAAct of 1964. 

<«o Sec 301(d)(2) of t'^e FAAct of 196.5 Inserted the words "to property . 

4™ The words ". or (3) in anv case in which the proceedings are commenced after 
January 1. 1966", which appeared' at this point, were struck out by Sec. 301(d) (2) of the 
FAAct of 1965. „ . ^ .„«„ 

*^ Subsection (f) was added by Sec. 301(d) (3) of the FAAct of 1962. 

<72 The parenthetical phrase was added by Sec. 301(e) of the FAAct of 1964. 



117 

(g)473 Notwithstanding any other provision of law, no monetary 
assistance shall be made available under this Act to any government 
or political subdivision or agency of such government which will be 
used to compensate owners for expropriated or nationalized property 
and, upon finding by the President that such assistance has been used 
by any government for such purpose, no further assistance under this 
Act shall be furnished to such government until appropriate reim- 
bursement is made to the United States for sums so diverted. 

(h)^^^ The President shall adopt regulations and established pro- 
cedures to insure that United States foreign aid is not used in a man- 
ner which, contrary to the best interests of the United States, promotes 
or assists the foreign aid projects or activities of the Communist-bloc 
countries. 

(i)*^* No assistance shall be provided under this or any other Act, 
and no sales shall be made under the Agricultural Trade Development 
and Assistance Act of 1954,*^^ to any country which the President de- 
termines is engaging in or preparing for aggressive military efforts, or 
which hereafter is officially represented at any international confer- 
ence when that representation includes the planning of activities in- 
volving insurrection or subversion, which military efforts, insurrec- 
tion, or subversion, are directed against — 

(1) the United States, 

(2) any country receiving assistance under this or any other 
Act, or 

(3) any country to which sales are made under the Agricultural 
Trade Development and Assistance Act of 1954.*^^ 

until the President determines that such military efforts or prepara- 
tions have ceased, or such representation has ceased, and he reports to 
the Congress that he has received assurances satisfactory to him that 
such military efforts or preparations will not be renewed, or that such 
representation will not be renewed or repeated.*^^ This restriction 
may not be waived pursuant to any authority contained in this Act. 
Q-^477 r^Yie President shall consider terminating assistance under this 
or any other Act to any country which permits, or fails to take ade- 
quate measures to prevent, the damage or destruction by mob action 
of United States property within such country, and fails to take ap- 

*" Subsections (g) and (h) were added by Sec. 301 rd) (3) of the FAAct of 1962. 

"* Subsection (I) was added by Sec. 301(e) (3) of the FAAct of 1963. 

475 YoT text, see pace 339. 

476T'ie first sentence of subsection (i) was amended by Sec. 301(h) (1) of the FAAct of 
1966. It formerly read as follows : 

"(i) No assistance shall be provided under this or any other Act, and no sales shall be 
made under the Agrricultural Trade Development and Assistance Act of 1954, to any 
country which the President determines is engaging in or preparing for aggressive military 
efforts directed against — 

"(1) the United States 

"(2) any country receiving assistance under this or any other Act, or 
"(3) any country to which sales are made under the Agricultural Trade Develop- 
ment and Assistance Act of 1954, 
until the President determines that such military efforts or prenaratlons have ceased and 
he reports to the Congress that he has received assurances satisfactory to him that such 
military efforts or preparations will not be renewed." 

*" Subjection (j). which was adried bv Sec. 301 (e^ (3) of the FAAct of 1963. was amended 
by Sec. 301(f) (1) of the FAAct of 1967. It formerly read as follows : "No assistance under 
this Act shflll be furnis*^ed to Indonesia unless t>ie President de^^e^mlnes that the furnishing 
of such assistance is essential to the national interest of the United States. The President 
shall keep the Foreign Relations Committee and the Appropriations Committee of the 
Senate and the Speaker of the House of Representatives fully and currently informed of 
any assistance furnished to Indonesia under this Act." 



118 

propriate measures to prevent a recurrence thereof and to provide 
adequate compensation for such damage or destruction. 

(k)^"^ Without the express approval of Congress, no assistance shall 
be furnished mider this Act to any country for construction of any 
productive enterprise with respect to which the aggregate value of 
assistance to be furnished by the United States will exceed $100,000,- 
000, except that this sentence does not apply with respect to assistance 
for construction of any productive enterprise in Eg^pt which is de- 
scribed in the presentation materials to Congress for fiscal year 1977/'" 
Except as otherwise provided in section oOG,'*^" no military assist- 
ance to be furnished beginning July 1, 1966, by the United States will 
exceed $100,000,000 unless such program has been included in the pres- 
entation to the Congress during its consideration of authorizations for 
appropriations under this Act or of appropriations pursuant to au- 
thorizations contained in this Act. No provision of this or any other 
Act shall be construed to authorize the President to waive the provi- 
sions of this subsection. 

^1^481 jj^g President shall consider denying assistance under this 
Act to the govermnent of any less developed country which, after De- 
cember 31, 1966, has failed to enter into an agreement with the Presi- 
dent to institute the investment guaranty program under section 
221(b) (l)"*^-' of this Act, providing protection against the specific 
risks of inconvertibility under subparagraph (A), and expropriation 
or confiscation under subparagraph (B), of such section 221 
(b)(l).^«^ 

(m)^^^ No assistance shall be furnished on a grant basis under this 
Act to any economically developed nation capable of sustaining its 
own defense burden and economic growth, except (1) to fulfill firm 
commitments made prior to July 1, 1963, or (2) additional orientation 
and training expenses under part II hereof during each *^* fiscal year 
in amount not to exceed $500,000.^«^ ^»^ 



*™ Subsection (k), which was added by Sec. 301(e)(3) of the FAAct of 1963, was 
amended bv Sec. 301(h) (2) of the FAAct ot 1966. It formerly read as follows : 

"(k) Until the enactment of the Foreign Assistance Act of the 1965 or other general legis- 
lation, during the calendar year 1965, authorizing additional appropriations to carry out 
programs of assistance under this Act, no assistance shall be furnished under this Act to 
any country for construction of any productive enterprise with respect to which the ag- 
gregate value of such assistance to be furnished by the United States will exceed $100,- 
000.000. No other provision of this Act shall be construed to authorize the President to 
waive the provisions of this subsection." 

*™ The words to this point beginning with ", except that this sentence does not apnly" 
were added by Sec. 606 of the International Security Assistance and Arms Export Control 
Act of 1976. 

*^ Sec. 301 ^f) (2) of the FAA^t of 1967 substituted "506" for '^510". 

«i Subsection (1), which was added by Sec. 301(e)(3) of the FAAct of 1963, was 
amended by Sec. 301 (h)(3) of the FAAct of 1936. It formerly read as follows : 

"(1) No assistance shall be provided under this Act after December 31, 1966, to the gov- 
ernment of any less developed country which has failed to enter into an agreement .vith 
the President to institute the investment guaranty program under section 221(b)(1) of 
this Act, providing protection against the specific risks of inconvertibility under subpara- 
graph (A), and expropriation or confiscation under subparagraph (B), of such section 
221(b)(1)." 

*82 References in this section to section 221(b)(1) should be references to section 234 
(a)(1). 

*83 Subsection (m) was added by Sec. 301(e) (3) of the FAAct of 1963. 

*84 Sec. 301(g) of the FAAct of 1964 added the word "each" : stnck o-t t'^e figure "1964" 
which appeared after "fiscal year", and substituted "$500,000" for "$1,000,000". 

<«= Sec. 2(b) of Public Law 94-537 provides that subsection (m) shall not apply with 
respect to foreign assistance and military sales activities carried out pursuant to the Treaty 
of Friendship and Cooperation Between the United States and Spain. 



119 

(n)«6 * * * [Repealed— 1977] 

(o)*^^ In determining whether or not to furnish assistance under 
this Act, consideration shall be given to excluding from such assist- 
ance any country which hereafter seizes, or imposes any penalty or 
sanction against, any United States fishing vessel on account of its 
fishing activities in international waters. The provisions of this sub- 
section shall not be applicable in any case governed by international 
agreement to Avhich the United States is a party. 

(p) 488 * * * [Repealed— 1974] 

^qJ489 ^fy assistance shall be furnished under this Act to any 
count ly which is in default, during a period in excess of six calendar 
months, in payment to the United States of principal or interest on 
any loan made to such country under this Act, unless such country 
meets its obligations under the loan or unless the President determines 
that assistance to such country is in the national interest and notifies 
the Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate of such determination. 

^j.^489 ^Q recipient of a loan made under the authority of this Act, 
any part of which is outstanding on or after the date of enactment 
of this subsection, shall be relieved of liability for the repayment of 
any part of the principal of or interest on such loan. 

(g^49o ^;i^^ jj^ order to restrain arms races and proliferation of 
sophisticated weapons, and to ensure that resources intended for 
economic development are not diverted to military purposes, the 
President shall take into account before furnishing development 
loans, Alliance loans or supporting assistance to any country under 
this Act, and before making sales under the Agricultural Trade 
Development and Assistance Act of 1954, as amended : *®^ 

(A) the percentage of the recipient or purchasing country's 
budget which is devoted to military purposes ; 

*8« Subsection (n), as added by Sec. 301(d) (4) of the FAAct of 1965 and amended by the 
FAAct of 1966, 1967, and 1974, was repealed by Sec. 123(b) of the International Develop- 
ment and Food Assistance Act of 1977 (91 Stat. 541). It formerly read as follows : 

"(n) No loans, credits, guaranties, or grants or other assistance shall be furnished 
under this or any other Act, and no sales shall be made under the Agricultural Trade 
Development and Assistance Act of 1954, to any cointry which sells or furnishes to North 
Vietnam, or which permits ships or aircraft under its registry to transport to or from 
North Vietnam, any equipment, materials, or commodities, so long as the regime in North 
Vietnam gives suooort to hostilities In South Vietnam, unless the President determines that 
such loans, credits, guaranties, grants, other assistance, or sales are in the national 
interest of the United States." 

*«7 Subsection (o) was added by Sec. 301 (d) (4) of the FAAct of 1965. 

**« Subsection (p), which related to assistance to the United Arab Republic, was repealed 
by Sec. 44 of the FAAct of 1974. 

«» Subsections (p), (q) and (r) were added by Sec. 301(h)(5) of the FAAct of 1966. 
See also P.L. 93-333. n. 245. 

*8o Subsection (s). which was added by Sec. 301(f) (4) of the FAAct of 1967, was amended 
by Sec. 303 (a) of the FAAct of 1969. It formerly read as follows : 

"(s) In furnishing development assistance under this Act. and in making sales under 
t>»e Agricultural Trade Development and Assistance Act of 1954, as amended, the President 
shall take into account (1) the percentage of the recipient or purchasing country's budget 
which is devoted to military purposes, and (2) t^e degree to which the recipient or 
purchasing country is using its foreign exchange resources to acquire military equipment. 
When the President finds that development assistance under this Act, or sales under the 
Agricultural Trade Development and Assistance Act of 1954, as amended, are being diverted 
to military expenditures, or a recipient or purchasing country is diverting its own re- 
sources to unnecessary military expenditures, to a degree which materially interferes 
with Its development, the President shall terminate such assistance and sales until he Is 
assured that such diversion will no longer take place. No other provision of this Act shall 
be construed to authorize the President to waive the provisions of this subsection. 

*»i For text, see page 339. 



120 

(B) the dcirree to whicli the recipient or purchasing: country 
is using its foreign exchange resources to accpiire military equip- 
ment; and 

(C) tlie amount spent by the recipient or purchasing country 
for the purcliase of sophisticated weapons systems, such as missile 
systems and jet aircraft for military purposCvS, from any country. 

(2) The President shall repoit annually to the Speaker of the 
House of Kepresentatives and the Committee on Foreign Relations of 
the Senate his actions in carrying out this provision. 

(t)^'-*- No assistance shall be furnished under this or any other Act 
and no sales shall be made under the Agricultural Trade Development 
and Assistance Act of 1954,^"* in or to any country which has severed 
or hereafter severs diplomatic relations with the United States or 
with which the ITnited State.s has severed or hei-eafter sevei-s diplo- 
matic relations, unless (1) diplomatic relations have been resumed 
with such country and (2) agieements for the furnishing of such 
assistance or the making of such sales, as the case may be, have been 
negotiated and entered into after the lesumption of diplomatic rela- 
tions with such country. 

(u)^®^ In any decision to provide or continue to provide any pro- 
gram of assistance to any country under the Foreign Assistance Act of 
1061, as amended, there shall be taken into account the status of the 
country with respect to its dues, assessments, and other obligations to 
the United Nations; and where such country is delinquent with respect 
to any such obligations for the purposes of the first sentence of Article 
19 of the United Nations Charter, the President shall furnish the 
Committee on Foreign Relations of (he Senate and the Speaker of 
(he House of Representatives a report setting forth the assurance given 
by the government of the country concerned of paying all of its 
arrearages and of placing its payments of such obligations on a cur- 
rent basis, or a full explanation of the unusual or exceptional circum- 
stances which render it eccmomically incapable of giving such 
assurance. 

(^)494 * * * [Repealed— 1974] 

(^)495 (;|^^ ^\i military, economic, or other assistance, all sales of 
defense articles and services ( whedier for cash or by credit, guaranty, 
or any other means), all sales of agricultural commodities (whether 
for cash, credit, or by other means), and all licenses with respect to 
the transportation of arms, ammunitions, and implements of war (in- 
cluding technical data relating thereto) to the Government of Pakistan 
under this or any other law shall be suspended on the date of enactment 
of this subsection. 

(2) The provisions of this subsection shall cease to apply when the 
President reports to the Congress that the Government of Pakistan is 
cooperating fully in allowing the situation in East Pakistan to return 
(o reasonable stability and that refugees from East Pakistan in India 
have been allowed, to the extent feasible, to return to their homes and 
to reclaim their lands ;ind properties. 

*92 Subsections (t) and (u) were added by Sec. 301(f)(4) of the FAAct of 1967. 
*^ For text, see page 839. 

*»* Subsection (v) was repealed by Sec. 24 of the FAAct of 1974. Former subsection 
(v) relating to assistance to Greece was added by Sec. 301 of the FAAct of 1971. 
** Subsection (w) was added by Sec. 301 of the FAAct of 1971, 



121 

(3) Xothing in this section shall apply to the provision of food and 
other humanitarian assistance winch is coordinated, distributed, or 
monitored under international auspices. 

(x)(l)'*^'^ All military assistance, all sales of defense articles and 
services (whether for cash or by credit, guaranty, or any other means) , 
and all licenses with respect to the transportation of arms, ammuni- 
tions, and implements of war (including teclinical data relating 
thereto) to the Govermnent of iurkey, shall be suspended on the date 
of enactment of this subsection unless and until the President deter- 
mines and certifies to the Congress that the Government of Turkey is 
m compliance with the Foreign Assistance Act of 1961, the Foreign 
Military iSales Act,^^^ and any agreement entered into under such Acts, 
and that substantial progress toward agreement has been made regard- 
ing niilitaiy forces in Cyprus: Provided^ That for the fiscal year 
19 Tb^^*^ the President may suspend the provisions of this subsection 
and of section 3(c) of the Arms Export Control Act^^^ with respect 
to cash sales and extensions of credits and guaranties under such Act 
for the procurement of such defense articles and defense services as 
the President determines are necessary to enable Turkey to fulfill her 
defence responsibilities as a member of the North Atlantic Treaty 
Organization, except that during the fiscal year 1978 ^'^^ the total value 
of defense articles and defense services sold to Turkey under such Act, 
either for cash or financed by credits and guaranties, shall not exceed 
$175,000,000.^°^ Any such suspension shall be effective only so long as 
Turkey observes the cease-fire on Cyprus, does not increase its military 
forces or its civilian population on Cyprus, and does not transfer to 
Cyprus any United States supplied arms, ammunition, or implements 
of war. The determination required by the proviso in the first sentence 
of this paragraph shall be made, on a case-by-case basis, with respect 
to each cash sale, each approval for use of credits, and each approval 
for use of a guaranty for Turkey. Each such determination shall be 
reported to the Congress and shall be accompanied by a full and com- 
plete statement of the reasons supporting the President's determina- 
tion and a statement containing the information specified in clauses 
(A) through (D) of section 2(c) (4) of the Act of October 6, 1975 
(Public Law 91—104). ^''^ In any case involving the sale of significant 
combat equipment on the United States ^lunitions List in which the 
congressional review provisions of section 36(b) of the Arms Export 
Control Act ^°^ do not apply, the President may not issue the letter of 
offer or approve the use of the credits or guaranty, as the case may be, 
until the end of the thirty-day period beginning on the date on which 

*« 22 use 2370. Subsection (x) Avas added by Sec. 22 of the FAAct of 1974. 

*^' For text, see pace 27.^. 

*9sSec. 22(d)(1) of the International Security Assistance Act of 1977 (91 Stat. 624) 
struck out the references to FY 1976 and 1977 and added the reference to FY 1978. 

*^' For text, see pape 276. 

5^ Sec. 22(d)(2) of the International Security Assistance Act of 1977 (91 Stat. 624) 
added the words "durinj; the fiscal year 1978". and struck out the following that had 
previously appeared at this point : 

"(A) during the fiscal year 1976 and the period bejrinninp: July 1. 1976, and ending 
September 30 1970. the total value of defense articles and defense services sold to Turkey 
under sucli Act. either for cash or financed bv credits and guaranties, shall not exceed 
?12.=>.000.000. and (B> durintr the fiscal vear 1977." 

5«iThe figure. ".<5175.000.000". was inserted in lieu of ".«125.000,000" by Sec. 22(d)(3) 
of the International Security Assistance Act of 1977 (91 Stat. 624). 

302 For text, see pacre 247. 

^ For text, see page 291. 



20-818 O - 78 - 9 



122 

the report required by the preceding sentence is submitted to the 
Congress.^"^ 

^2)505 jjjj. President shall submit to the Congress within 60 days 
after the enactment of this paragraph,^"^ and at the end of such suc- 
ceeding sixty-day period, a report on progress nuide during suc.i period 
toward the conclusion of a negotiated solution of the Cyprus conflict. 

Sec. 620A. '"" Prohibition Against Furnishing Assistance to Coun- 
tries Which Grant Sanctuary to International Terrorists. — (a) P^x- 
cept where the Presich'ut finds national security to require otherwise, 
the President shall terminate all assistance undei* this Act to any gov- 
ernment which aids or abets, by granting sanctuary from prosecution 
to, any individual or group which has connnitted an act of interna- 
tional terrorism and the President may not thereafter furnish assist- 
ance to such government until the end of the one year period beginning 
on the date of such termination, except that if during its period 
of ineligibility for assistance under this section such government aids 
or abets, by granting sanctuary from piosecution to, any other indi- 
vidual or group which has committed an act of international terrorism, 
such government's i)eriod of ineligibility sliall be extended for an 
additional year for each such individual or group. 

(b) If the President finds that national security justifies a continu- 
ation of assistance to any gov^eniment described in subsection (a), 
ho shall report such finding to the Speaker of the House of Kepre- 
sentati\es and the Conmiittee on Foreign Relations of the Senate. 

Sec. 620B. '°^ Prohibition Against Assistance and Sales to Argen- 
tina.— After Septeml>er 30, 19Y8— 

( 1 ) no assistance nuiy be furnished under chapter 2, 4, or 5 of 
part II of this Act to Argentina ; 

(2) no credits (including ])articipation in credits) may be 
extended and no loan may be guaranteed under the Arms Export 
Control Act with respect to Argentina ; 

(3) no sales of defense articles or services may be made under 
the Arms Export Control Act to Argentina; and 

(4) no export licenses may be issued under section 38 of the 
Arms Export Control Act to or for the Government of Argentina. 



50* Sec. 403 of the International Security Assistance and Arms Export Control Act 
of 1976 amended Sec. 020(x)(l) beginnint: with the words ''Provided, That for the fiscal 
year.'. Sec 620(x)(l) formerly read as follows: Provided, That the President Is author- 
ized to suspend the provisions of this section and such acts if he determines that such sus- 
pension will further negotiations for a peaceful solution of the Cyprus conflict. Any such 
suspension sliall be effective only until February 5. 1975. and only if, during that time, 
Turkey shall observe the ceasefire and shall neither increase its forces in Cyprus nor 
transfer to Cyprus any U.S. supplied implements of war." 

Sec. 020 (x) had previouslv been amended also at the point beginning with the word 
"Provided" by Sec. 2(c)(1) 'of Public Law 94-104. However, pursuant to Sec. 2(c)(5) 
of Public Law 94-104, Subsection (c) did not become eflfective until enactment of foreign 
assistance legislation authorizing sales, credits, and guaranties under the Foreign Military 
Sales Act for fiscal year 1976. Such authorization for fiscal year 1976 was not enacted 
until passage of the International Security Assistance and Arms Export Control Act 
of 1970. Since Sec. 40,3 of such Act further amended Sec. 620(x)(l), the amendments 
contained in Sec. 2(c)(1) of Public Law 94-104 never became effective. See page 233 for 
coniDlete text of Public Law Ji4-104. 

^^ Paragraph (2) was added bv Sec. 2(c) (2) of Public Law 94-104. 

=<» Paragraph (2) did not become effective until enactment of the International Secu- 
rity Assistance and Arms Export Control Act of 1976 on June 30, 1970. See Sec. 2(c) (5> 
of Pnb'ip Taw (»4_104 (nace 247) for explanation of the effective date of paraeraph (2). 

^7 22 use 2371. Sec. 620A was added by Sec. 303 of the International Security Assistance 
and Arms Export Control Art of 1970. 

=<>• 22 use 2372. Sec. 620B was added by Sec. 11 of the International Security Assist- 
ance Act of 1977 (91 Stat. 019). 



123 
Chapter 2 — Administrative Provisions 

Sec. 621.509 Exercise of Functions.^^^— (a)^" The President may 
exercise any functions conferred upon him by this Act through such 
agency or officer of the United States Government as he shall direct. 
The head of any such agency or such officer may from time to time 
promulgate such rules and regulatiojis as may be necessary to carry 
out such functions and may delegate authority to perform any such 
functions, including, if he shall so specify, the authority successively 
to redelegate any of such functions to any of his subordinates. In pro- 
viding technical assistance under this Act, the head of any such agency 
or such officer shall utilize, to the fullest extent practicable, goods and 
professional and other services from private enterprise on a contract 
basis. In such fields as education, health, housing, or agriculture, the 
facilities and resources of other Federal agencies shall be utilized when 
such facilities are particularly or uniquely suitable for technical assist- 
ance, are not competitive with private enterprise, and can be made 
available without interfering unduly Avith domestic programs.^^^ 

(b) ^^^ The President shall issue and enforce regulations determining 
the eligibility of any person to receive funds made available under 
this Act. A person may be suspended under such regulations for a 
temporary period pending the completion of an investigation and any 
resulting judicial or debarment proceedings, upon cause for belief 
that such person or an affiliate thereof probably has undertaken con- 
duct which constitutes a cause for debarment; and, after an oppor- 
tunity has been afforded to such person for a hearing, he may be de- 
barred for an additional period, not to exceed three years. Among 
the causes for debarment shall be ( 1 ) offering or accepting a bribe or 
other illegal payment or credit in connection with any transaction 
financed with funds made available under this Act ; or (2) committing 
a fraud in the procurement or performance of any contract financed 
with funds made available under this Act; or (3) acting in any other 
manner which shows a lack of integrity or honesty in connection with 
any transaction financed Avith funds made available under this Act. 
Reinstatement of eligibility in each particular case shall be subject 
to such conditions as the President shall direct. Each person whose 
eligibility is denied or suspended under this subsection shall, upon 
request, be entitled to a review of his eligibility not less often than 
once every two years. 

Sec. 621 A.5" Strengthened Management Practices. — (a) The 
Congress believes that United States foreign aid funds could be uti- 
lized more effectively by the application of advanced management 
decisionmaking, information and analysis techniques such as systems 



^9 22 use § 2381. 

^10 Sec. 302(a) of the FAAct of 19G2 struck out subsection designation "(a)" and re- 
pealed subsections (b). (c). (d), and (e). 

•■'" Subsection designation "(a)" and subsection (b) were added by the Sec. 302(a) of the 
FAAct of 1968. 

'"'2 Sec. 302(a) of the FAAct of 1963, -s'lbstitnted the last two sentences in l-'eu of a 
former sentence, which read as follows : "In providing technical assistance under this Act 
in the field of education, health housing, or agriculture, or in other fields, the head of any 
such agency or such officer shall utilize, to the fullest extent practicable, the facilities and 
resources of the Federal agency or agencies with primary responsibilities for domestic 
protrrams in such fielr^s." 

513 22 U.S.C. § 2381a. Sec. 621 A was added by Sec. 302(b) of the FAAct of 1968. 



124 

analysis, automatic data processing, benefit-cost studies, and infor- 
mation retrieval. 

(b) To meet this need, the President shall establish a management 
system that includes: the definition of objectives and programs for 
United States forei^jn assistance; the development of quantitative in- 
dicators of pro«^ress toward these objectives; the orderly consideration 
of alternative means for accomplishing such objectives; and the adop- 
tion of methods for comparing actual results of pro^rrams and projects 
with those anticipated when they were undertaken. The system should 
provide information to the agency and to (^on^jress that relates agency 
resources, expenditures, and bud<rot projections to such objectives and 
results in order to assist in the evaluation of pro^jram performance, the 
review of budgetary requests, and the settin<2: of pro<j:ram priorities. 

(c) The President shall report to the Cong^ress annually on the 
specific steps that have been taken, including an evaluation of the 
progress that has been made toward the implementation of this 
section. 

Sec. 622."* Coordination With Foreign Policy.— (a) Nothing 
contained in this Act shall be construed to infringe upon the powers or 
functions of the Secretary of State. 

(b) The President shall prescribe appropriate procedures to assure 
coordination among representatives of the United States Government 
in each country, under the leadership of the Chief of the United States 
Diplomatic Mission. The ('hief of the Diplomatic Mission shall make 
sure that reconunendations of such representatives pertaining to mili- 
tary assistance (including civic action) and military education and 
training programs ^^^ are coordinated with political and economic 
considerations, and his comments shall accompany such reconunenda- 
tions if he so desires. 

^^^516 Under the direction of the President, the Secretary of State 
shall be responsible for the contiiuious supervision and general direc- 
tion of economic assistance, military assistance, and military education 
and training programs, including but not limited to determining 
whether there shall be a military assistance (including civic action) or 
a military education and training program for a country and the value 
thereof, to the end that such programs are etfectiv-ely integrated both 
at home and abroad and the loreign policy of the United States is best 
served thereby. 

Sec. 623.'^^ The Secretary of Defense. — (a) In the case of assist- 
ance under part II of this Act, the Secretary of Defense shall have 

primary responsibility for 

(1) the determination of military end-item requirements; 

«*22 U.S.C. § 2382. 

51^ Sec. 302(a)(1) of the FAAct of 1906 substitufed "(including: civic action) or sales 
projrrams" for "(including any civil action and sales program)". Sec. 45(h)(1) of the 
Foreign Military Sales Act (Public Law 90-620) struck out "or sales" which appeared 
before the word "programs". Sec. 106(b) of the International Security Assistance and 
Arms Export Control Act of 1976 added the words "and military education and training". 

s'*' Subsection (c) was amended bv Sec. 106(b) of the InternatJonal Security Assistance 
and Arms Export Control Act of 1976. It formerly read : "Under the direction of the 
President, the Secretary of State shall be resnonsibie for the continuous s^uoervislon and 
general direction of economic assistance and military assistance programs, including 
but not limited to determining whether there shall be a military assistance (including 
civic action) program for a country and the value thereof, to the end that such programs 
are effectively Integrated both at home and abroad and the foreign policy of the United 
States is best served thereby." 

«7 22 U.S.C. § 2383. 



125 

(2) the procurement of military equipment in a manner which 
permits its integration with service programs ; 

(3) the supervision of end-item use by the recipient countries; 

(4) the supervision of the training of foreign military 
and related civilian ^^® personnel ; 

(5) the movement and delivery of military end-items ; and 

(6) within the Department of Defense, the performance of any 
other functions with respect to the furnishmg of military 
assistance, education and training.^^^ 

(b) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall be determined by the 
Secretary of Defense. 

Sec. 624.^2° Statutory Officers. — (a) The President may appoint, 
by and with the advice and consent of the Senate, twelve oiiicers in the 
agency primarily responsible for administering part X, * * * [Re- 
pealed— 1964] 

(1) * * * [Repealed— 1964" 

(2) * * * [Repealed— 1964] 

(3) * * * [Repealed — 1964] ^^^ and in the selection of one of 
such persons due consideration shall be given to persons qualilied 
as professional engineers. 

(b) Within the limitations established by subsection (a) of this 
section, the President may fix the rate of compensation, and may 
designate the title of, any officer appointed pursuant to the authority 
contained in that subsection. The President may also fix the order of 
succession among the officers provided for in ^^^ subsection (a) of this 
section in the event of the absence, death, resignation, or disability of 
one or more of said officers.^^^ 

(c) Any person who was appointed by and with the advice and 
consent of the Senate, to any statutory position authorized by any pro- 
vision of law repealed by section 642(a) and who is serving in one of 
such positions at the time of transfer of functions pursuant to sub- 
sections (c) and (d) of section 621, may be appointed by the Presi- 
dent to a comparable position authorized by subsection (a) of this 
section on the date of the establishment of the agency primarily re- 
sponsible for administering part I, without further action by the 
Senate. 



^18 The words "and related civilian" were added by Sec. 106(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

^i» The words ". education and training" were added by Sec. 106(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

520 22 U.S.C. § 2384. 

521 That part of Sec. 624(a) to this point, beginninj; with the words "of whom — " was 
repealed bv Sec. 305(42) of the Government Employees Salary Reform Act of 1964 (Public 
Law S8-426). The repealed part read as follows : 

• * * "of whom — 

"(1) one shall have the rank of an Under Secretary and shall be compensated at 
ft rate not to exceed the rate authorized by law for any Under Secretary of an Execu- 
tive Derartment ; 

"(2) one shall have the rank of a Deputy Under Secretary and shall be compen- 
sated at a rate not to exceed the rate authorized by law for any Deputy Under 
Secretary of an Executive Department : and 

"(3) ten shall have the rank of Assistant Secretaries and shall be compensated at 

a rate not to exceed the rate authorized by law for any Assistant Secretary of an 

Executive Department.". 

622 Sec. 302(b)(1) of the FAAct of 1965 struck out the words "paragranh (3) of" 

which appeared at this point, and also substituted "or one or more of said officers" for 

"of the officers provided for in paragraphs (1) and (2) of that subsection". 



126 



Note. — Effective July 1, 1978, subsection (d) will be repealed 
pursuant to Sec. 124 of the International Development and 
Food Assistance Act of 1977 (91 Stat. 541). 



(d)^" (1) In addition to the officers provided for in subsection (a) 
of this section, there shall be in the Department of State an officer with 
the title of "Inspector General, Foreign Assistance," who shall be ap- 
pointed by the President, by and with the advice and consent of the 
Senate. In addition, there shall be one Deputy Inspector General, For- 
eign Assistance, who shall be appointed by tne President by and with 
the advice and consent of the Senate,^^* and two Assistant Inspector 
Generals, Foreign Assistance, who shall be appointed by the Presi- 
dent, and such other personnel as may be required to carry out the func- 
tions vested in the Inspector (Jeneral, Foreign Assistance, by this sub- 
section. Notwithstanding any other provisions of law, such of the 
personnel employed under the authority of section 533A of the Mutual 
Security Act of 1954, as amended, as the Inspector General Foreign 
Assistance, may designate, and such of the property, records and 
funds of tlie office established by such section 533A as the Inspector 
General, Foreign Assistance, may deem necessary, may be transferred 
to the office of the Inspector General, Foreign Assist ance.^^^ 

(2) The Inspector CJeneral, Foreign Assistance, shall report di- 
lectly to the Secretary of State, and shall have the following duties 
and responsibilities: 

(A) He shall arrange for, direct or conduct such reviews, in- 
spections and audits of programs being conducted under part I of 
this Act (including the Overseas Private Investment Corpora- 
tion), and under part IV of the Foreign Assistance Act of 1969 
(the Inter- American Social Development Institute) ^^^ and of the 
Peace Corps, and programs being conducted by the United States 
Government agencies under the Latin American Development Act, 

^3 Sec. 302(b) of the FAAct of 1962 repealed subsection (d) and redesignated subsec- 
tion (e) as subsection "d". 

Delegation of Authority No. 128, 38 F.R. 23341, dated Aug. 21, 1973 : 

Inspector General, Foreign Assistance 

delegation of authority 

Pursuant to the authority vested in me by section 4 of the Act of May 26, 1949. as 
amended (22 U.S.C. 2658). I hereby delegate to the Inspector General. Foreign Assistance 
the authority successively to redelegate any of the functions vested in the Department of 
State, and not heretofore reserved to the Secretary of State, by section 624(d) of the For- 
eign Assistance Act of 1961. as amended (22 U.S.C. 2384(d)). 

This Delegation of Authoritv shall be effective August 29. 1973. 

52* Sec. 302(b) (4) of the FAAct of 1963 added the words "who shall be appointed by the 
President by and with the ndvice and consent of the Senate.". 

525 Sec. 30o(53) of the Government Emplovees Salary Reform Act of 1964 (P.L. 88-426) 
repealed the last sentence of this section, which read as follows: "The Inspector General. 
Foreign Assistance, shall receive compensation at the rate of $20,000 annually ; the Deputy 
Inspector General. Foreign Assistance, shall receive compensation at the rate of $20,000 
annually, and each Assistant Inspector General, Foreign Assistance, shall receive compen- 
sation at the rate of $19,000 annuallv." 

Sec. 303(d) (52) of the Government Employees Salary Reform Act of 1964 established an 
annual basic compensation of $27.()00 for the Inspector General. Foreign Assis<^ance, and 
Sec. 303(d) (53) established an annual basic compensation of $27,000 for the Deputy In- 
spector General. Foreign Assistance. 

526 Tbe word's to this T>oint beginning with "(including the Overseas", were added by 
Sec. 304 (1) of the FAAct of 1969. 



127 

as amended,^^^ as he considers necessary for the purpose of ascer- 
taining the efficiency and the economy of their administration, 
their consonance with the foreign policy of the United States, and 
the attainment of their objectives. 

(B) For the purpose of ascertaininjz the extent to which pro- 
grams ^2^ being carried out under part II of this Act and the Agri- 
cultural Trade Development and Assistance Act of 1954, as 
amended,^^^ are in consonance with the foreign policy of the 
United States, are aiding in the attainment of the objectives of 
this Act, and are being carried out consistently with the respon- 
sibilities with respect thereto of the respective United States chiefs 
of missions and of the Secretary of State, as well as the efficiency 
and the economy with which such responsibilities are discharged, 
he shall arrange for, direct or conduct such reviews, inspections 
and audits of programs under part II of this Act and the Agri- 
cultural Trade Development and Assistance Act of 1954, as 
amended, as he considers necessary. 

(3) The Inspector General, Foreign Assistance, shall maintain 
continuous observation and review of programs with respect to which 
he has responsibilities under paragraph (2) of this subsection for the 
purpose of — 

(A) determining the extent to which such programs are in 
compliance with applicable laws and regulations; 

(B) making recommendations for the correction of deficiencies 
in, or for improving the organization, plans or procedures of, 
such programs ; and 

(C) evaluating the effectiveness of such programs in attaining 
United States foreign policy objectives and reporting to the 
Secretary of State with respect thereto. 

(4) In order to eliminate duplication and to assure full utilization 
of existing data, the Inspector General, Foreign Assistance, shall in 
carrying out his duties under this Act, give due regard to the audit, 
investigative and inspection activities of the various agencies, includ- 
ing those of the General Accounting Office and of the military- 
Inspectors General. 

(5) For the purpose of aiding in carrying out his duties under this 
Act, the Inspector General, Foreign Assistance, shall have access to 
all records, reports, audits, reviews, documents, papers, recommenda- 
tions, or other material of the agencies of the United States Govem- 
moiit administering part I or II of this Act and the Latin American 
Development Act, as amended,^3o ^j^^ p^^^^^ Corps or the Agricultural 
Ti-nde Development and Assistance Act of 19.54, as amended, and part 
IV of the Foreign Assistance Act of 1969.^3i ^^ agencies of the United 

„Jr'^i\*'»T.^^x^ "•o^"-^^'*^*^''""'^ ^'"'"^ oondiirtpfl hy FnitPfl Stntes Government acencies 
nf .^L^'a A'''^H'';nf-'^^v:".T!^''^ ^^^^'^ ^y ^^<^- •'^02(b) of the FAAct of 1962. Sec. 302(b) (2) 
-PnhUJro''* 2«^-?o^r?»^"J?''*'*"^^^ the Latin American Development Act. as amenc^ed" for 
el^ ^ oo?' 86-<35 . For the text of Latin American Development Act, as amended, 
see nace Z—.i. 

302t7)^'frh''e''FAlctoTl96r'''' ^'^"'^ ^PP^ared at this point were struck out by Sec. 

"2» For text, .see nage 339. 
Aerrslim'enyed-'flV^k'Srie'Law 86-735 ••' ^"*^'""'^'' ""'' I""'" ^'»""^«° Development 



128 

States Govcrnmont sliall cooperate with the Inspector General, 
Foreign Assistance, and shall furnish assistance upon request to the 
Inspector General, Foreign Assistance, in aid of his responsibilities. 

(6) The Inspector General, Foreign Assistance, shall have authority 
to suspend all or any part of any project or operation (but not a coun- 
try program) with respect to which he has conducted or is conducting 
an inspection, audit or review provided he first has given written 
notice to the Secretary of State. Any such suspension shall remain 
effective until such program or part thereof is ordered resumed by the 
Inspector General, Foreign Assistance, or by the Secretary of State. 
This paragraph shall not apply to part II of this Act, and with respect 
to the Agricultural Trade Development and Assistance Act of 1954, 
as amended, shall apply only to projects and operations administered 
by the Secretary of State. 

(7) Expenses of the Inspector General, Foreign Assistance, with 
respect to programs under part I or II of this Act, and part IV of the 
Foreign Assistance Act of 1969/'^= and the Latin American Develop- 
ment Act, as amended,^^° and the Peace Corps shall be charged to the 
appropriations made io carry out such programs, and with respect to 
programs under the Agricultural Trade Development and Assistance 
Act of 1954, as amended, shall be charged to funds available under the 
authority of this Act : Provided^ That such appropriations shall not 
bo charged with such expenses after the expiration of a thirty-five day 
period which begins on the date the General Accounting Office, or any 
committee of the Congress, or any duly authorized subcommittee 
thereof, charged with considering legislation, appropriations, or ex- 
penditures under the Act, has delivered to the Office of the Secretary 
of State a written request that it be furnished any document, paper, 
communication, audit, review, finding, recommendation, report, or 
otiier material which relates to the operation or activities of the In- 
spector General, Foreign Assistance, unless and until there has been 
furnished to the General Accounting Office, or to such committee, or 
subcommittee, as the case may be, (A) the document, paper, communi- 
cation, audit, review, finding, recommendation, report, or other mate- 
rial so requested, or (B) a certification by the President personally that 
he has forbidden the furnishing thereof pursuant to such request and 
his reason for s-o doing.^^^ The waiver authority in section 614 (a) of 
this Act and the provisions of section 634(c) of this Act shall not apply 
to this subsection. Such expenses shall not exceed $2,000,000 in any 
fiscal year. The Inspector General, Foreign Assistance, may make ex- 
penditures (not in excess of $2,000 in any fiscal year) of a confidential 
nature when he finds that such expenditures are in aid of inspections, 
audits, or reviews under this subsection. A certificate of the amount 
of each such expenditure, the nature of which it is considered inad- 
visable to specify, shall be made by the Inspector General, Foreign 
Assistance, and every such certificate shall be deemed a sufficient 
voucher for the amount therein specified. ^^^ 

532 The Avords "and part IV of the Foreism .Assistance ^ct of 1969." were added by 
Sec. 304(3) of t'le F v Act of 1969. For text of part IV. see page 191. 

f^'^See also Sec. 634(c) of this Act and Sec. 502 of the FA Appropriations Act. 1978, 
page 214. 

534 See also Sec. 614(c) and Sec. 636(a) (8) of this Act. 



129 

(8)535 Whenever the Inspector General, Foreign Assistance, deems 
it appropriate in carrying out his duties under this Act, he may from 
time to time notify the head of any agency primarily responsible for 
administering any program with respect to which the Inspector Gen- 
eral j Foreign Assistance, has responsibilities under paragraph (2) of 
this subsection that all internal audit, end-use inspection, and man- 
agement inspection reports submitted to the head of such agency or 
mission in the field in connection with such program from any geo- 
graphic areas designated by the Inspector General, Foreign Assistance, 
shall be submitted simultaneously to the Inspector General, Foreign 
Assistance. The head of each such agency shall cooperate with the In- 
spector General, Foreign Assistance, in carrying out the provisions of 
this paragraph. 

(g)536 jj^ addition to the officers otherwise provided for in this sec- 
tion, the President shall appoint, by and with the advice and consent 
of the Senate, one officer for the purpose of coordinating security assist- 
ance programs. 

(f^537 (1)538 There shall be in the Department of State an Assistant 
Secretary of State for Human Rights and Humanitarian Affairs who 
shall be responsible to the Secretary of State for matters pertaining to 
human rights and humanitarian affairs (including matters relating to 
refugees, prisoners of war, and members of the United States Armed 
Forces missing in action) in the conduct of foreign policy. The Secre- 
tary of State shall carry out his responsibility under section 502B of 
this Act through the Assistant Secretary. 

(2) The Assistant Secretary of State for Human Rights and Hu- 
manitarian Affairs ^^^ shall maintain continuous observation and re- 
view of all matters pertaining to human rights and humanitarian 
affairs (including matters relating to refugees, prisoners of war, and 
members of the United States Armed Forces missing in action) in the 
conduct of foreign policy including — 

(A) gathering detailed information regarding humanitarian 
affairs and the observance of and respect for internationally 
recognized human rights in each country to which requirements 
of sections 116 and 502B of this Act are relevant; 

(B) preparing the statements and reports to Congress required 
under section 502B of this Act ; 

(C) making recommendations to the Secretary of State and 
the Administrator of the Agency for International Development 
regarding compliance with sections 116 and 502B of this Act ; and 



^Paragraph (8) was added by sec. 302(b) of the FAAct of 1966. 
538 Subsection (e) was added by Sec. 302 of the FAAct of 1971. 

537 Subsection (f) was added by Sec. 301(b) of the International Security Assistance 
and Arms Export Control Act of 1976. 

538 Paragraph (1) was amended and restated by Sec. 109(a)(1) of the Foreign Relations 
Authorization Act, Fiscal Year 1978 (91 Stat. 846). It formerly read as follows : 

"(1) There is established in the Department of State a Coordinator for Human Rights 
and Humanitarian Affairs. The Coordinator shall be appointed by the President with the 
advice and consent of the Senate. He shall be responsible to the Secretary of State for 
matters pertaining to human rights and humanitarian affairs (including matters relating 
to refugees, prisoners of war, and members of the United States Armed Forces missing in 
action) in the conduct of foreign policy. The Secretary of State shall carry out his responsi- 
bility under section 502B of this Act through the Coordinator for Human Rights and 
Humanitarian Affairs." 

«»The title designation of Assistant Secretary of State was inserted in lieu of Coordi- 
nator by Sec. 109(a) (1) (B) of the Foreign Relations Authorization Act, Fiscal Year 1978 
(91 Stat. 846). 



130 

(D) performing other responsibilities which serve to promote 

increased observance of internationally recognized human rights 

b all countries. 

Se^. 625.'^'* Employment of Personnel — a() Any agency or officer 

of the United States Government carrying out functions under this 

Act is authorized to employ such personnel as the President deems 

necessary to carry out the provisions and purposes of this Act. 

(b) Of the personnel employed in the United States to carry out 
part I or coordinate part I and part II, not to exceed one hundred 
and ten ^*^ may be appointed, compensated or removed without regard 
to the provisions of any law, of whom not to exceed fifty-one may be 
compensated at rates Jiigher than those provided for grade 15 of the 
general schedule established by section 5;J32 of title 5 of the United 
States Code,^^- but not in excess of the highest rate of grade 18 of such 
general schedule : ^^^ Provided, That, under such regulations as the 
President shall prescribe, officers and employees of the United States 
Government who are appointed to any of the above positions may be 
entitled, upon removal from such position, to reinstatement to the 
position occupied at the time of appointment or to a position of com- 
parable grade and salary. Such positions shall be in addition to those 
authorized by law to be filled by Presidential appointment, and in 
addition to the number authorized by section 5108 of title 5 of the 
United States Code.^** 

(c) Of the personnel employed in the United States to carry out part 
II, or any Act superseding part II in whole or in part,^" not to exceed 
eight may be compensated at rates higher than those provided for 
grade 15 of the general scliedule established by section 5332 of title 5 
of the United States Code,^^*^ but not in excess of the highest rate of 
grade 18 of such general schedule. ^^^ Such positions vshall be in addi- 
tion to those authorized by law to be filled by Presidential appoint- 
ment, and in addition to the number authorized by section 5108 of 
title 5 of the United States Code.^*^ 

(d) For the purpose of performing functions under this Act out- 
side the United States the President may — 

(1) employ or assign persons, or authorize the employment or 
assignment of officers or employees by agencies of the United 



"0 22 use § 2385. 

"1 Sec. 301(c)(1) of the FAAct of 1962 substituted "one hundred and ten" in lieu of 
"seventy-six". 

"2 Sec. 302(b)(1) of the FAAct of 1967 snb.stituted. "Section 5332 of title 5 of the 
United States Code" in lieu of "the Classification Act of 1949, as amended (5 U.S.C. 
1071 et seq.)". 

"3 Sec. 1001 (k)(l) of the Postal Service and Federal Employees Salary Act of 1962 
(Public law 87-793) substituted the words "but not in excess of the highest rate of 
grade 18 of such general schedule" in lieu of "and of these, not to exceed eight may be 
compensated at a rate in excess of the highest rate provided for grades of such general 
schedule but not in excess of $19,000 per year". 

"*Sec. 302(b)(2) of the FAAct of 1967 substit'ited "5108 of title 5 of the United 
States Code" in lieu of "505 of the Classification Act of 1949, as amended". 

"5 The words "or any Act superseding part II in whole or in part," were added by 
Sec. 302 (c) of the FAAct of 1968. 

w« Sec. 302(c) (1) of the FAAct of 1967 substituted "section 5332 of title 5 of the United 
States Code" in lieu of "the Classification Act of 1949. as amended". 

^7 Sec. 1001(k)(2) of the Postal Service and Federal Employees Salarv Act of 1962 
(Public Law 87-793) substituted the words "but not in excess of the highest rate of 
grade 18 of such general schedule" in lieu of "and if these, not to exceed three may be 
compensated at a rate in excess of the highest rate provided for grades of such general 
schedule but not in excess of $19,000 per year". 

"8 Sec. 302(c) (2) of the FAAct of 1967 substituted "5108 of title 5 of the United States 
Code" in lieu of "505 of the Classification Act of 1949, as amended". 



131 

States Government, wlio shall receive compensation at any of the 
rates provided for the Foreign Service Reserve and Staff by the 
Foreign Service Act of 1946, as amended ^^^ (22 U.S.C. 801 et seq.) , 
together with allowances and benefits thereunder; and persons so 
employed or assigned shall be entitled, except to the extent that 
the President may specify otherAvise in cases in which the period 
of employment or assignment exceeds thirty months, to the same 
benefits as are provided by section 528 of that Act for persons 
appointed to the Foreign Service Reserve, and the provisions of 
section 1005 of that Act shall apply in the case of such persons, 
except that policy-making officials shall not be subject to that 
part of section 1005 of that Act which prohibits political tests; and 
(2) utilize such authority, including authority to appoint and 
assign personnel for the duration of operations under this Act, 
contained in the Foreign Service Act of 1946, as amended, as the 
President deems necessary to carry out functions under this Act ; 
and such provisions of the Foreign Service Act of 1946, as 
amended, as the President deems appropriate shall apply to per- 
sonnel appointed or assigned under this paragraph, including in 
all cases the provisions of section 528 of that Act : Provided^ how- 
ever^ That the President may by regulation make exceptions to 
the application of section 528 in cases in which the period of the 
appointment or assignment exceeds thirty months: Provided fur- 
ther^ That Foreign Service Reserve officers appointed or assigned 
pursuant to this paragraph shall receive within-class salary in- 
creases in accordance with such regulations as the President may 
prescribe: Provided further^ That, whenever the President deter- 
mines it to be important for the purposes of this Act, the President 
may initially assign personnel under this paragraph for duty 
w^ithin the United States for a period not to exceed two years for 
the purpose of preparation for assignment outside the United 
States.^^" 

(e) The President is authorized to prescribe by regulation stand- 
ards or other criteria for maintaining adequate performance levels for 
personnel appointed or assigned pursuant to paragraph (2) of sub- 
section (d) of this section and section 527(c) (2) of the Mutual Se- 
curity Act of 1954, as amended, and may. notwithstanding any other 
law, but subject to an appropriate administrative appeal, separate 
employees who fail to meet such standards or other criteria, and also 
may grant such personnel severance benefits of one month's salary for 
each year's service, but not to exceed one year's salary at the then 
current salary rate of such personnel. 

(f ) Funds provided for in agreements with foreign countries for the 
furnishing of services under this Act with respect to specific projects 
shall be deemed to be obligated for the services of personnel employed 
by agencies of the United States Government (other than the agencies 

^^ For text, see naee 500. 

550 The last nrovjso In t'ns ^^aragranh was ad'^ed bv Ser. 302rc) of t'-e FAAot of 1962. 
The last phrase of this paragraph, which had been amended by the FAAct of 1964 and 
the FAAct of 19R7 was str ck out hv Sec. 125 of the International Development and Food 
Assistance Act of 1977. It formerly read as follows : 

" ; however, t'^e authority contained in this proviso mav not be exercised with respect 
to the assignment to such duty of more than fifty persons at any one time." 



132 

primarily responsible for administering part I or part II of this Act) 
as well as personnel not employed by the United Statse (Tovernment.^''^ 

(g) The principles regarding foreign language competence set forth 
in section 578 of the Foreign Service Act of 1946, as amended "" (22 
U.S.C. 801), shall be applicable to personnel carrying out functions 
under this Act and the Secretary of State shall make appropriate 
designations and standards for such personnel. 

(h) Notwithstanding any other provision of law, officers and em- 
ployees of the United States Government performing functions under 
this Act shall not accept from any foreign country any compensation 
or other benefits. Arrangements may be made by the President with 
such countries for reimbursement to the United States Government or 
other sharing of the cost of performing such functions. 

(i) To the maximum extent practicable officers and employees per- 
forming functions under this Act abroad shall be assigned to countries 
and positions for which they have special com])etence, such as appro- 
priate language and practical experience. 

(j)^'^ The President may appoint or assign a United States citizen 
to be representative of the United States to the Tnter-American Com- 
mittee on the Alliance for Progress and, in his discretion, may ter- 
minate such appointment or assignment, notwithstanding any other 
provision of law. Such person may be compensated at a rate not to 
exceed that authorized for a chief of mission, class 2, within the mean- 
ing of the Foreign Service Act of 1946, as amended."* 

(k)"^ (1) In accordance with such regulations as the President may 
prescribe, the following categories of personnel who serve in the agency 
primarily responsible tor administering part I of this Act sliall become 
participants in the Foreign Service Retirement and Disability System : 

(A) persons serving under unlimited appointments m em- 
ployment subject to subsection (d) (2) of this section as Foreign 
Service Reserve officers and as Foreign Service staff officers and 
employees; and 

(B) a person serving in a position to which he was appointed 
by the President, whether with or without the advice and consent 
of the Senate, if (i) such person shall have served previously 
under an unlimited appointment pursuant to such subsection 
(d) (2) or a comparable provision of predecessor legislation to 
this Act, and (ii) following service specified in clause (i) of this 
subparagraph, such person shall have served continuously with 
such agency or its predecessor agencies only in positions estab- 
lished under the authority of sections 624(aj and 631(b) or com- 
parable provisions of predecessor legislation to this Act. 

(2) Upon becoming a participant in the Foreign Service Retire- 
ment and Disability System any such officer or employee shall make 
a special contribution to the Foreign Service Retirement and Dis- 
ability Fund in accordance with the provisions of section 852 of the 

551 Sec. 625(f) was amended by Sec. (c)(3) of the FAAct of lft62. It formerly read as 
follows : "Funds provided for in aprreements with foreign countries for the furnishing of 
services under this Act shall be deemed to be obligated for the services of personnel em- 
ployed by the United States Government as well as other personnel". 

5^ For" text, see page 527. 

=« Subsection (j) was added by Sec. 302(a) (2) of the FAAct of 1964. 

^5* For tevt. see page 500. 

555 Subsection (k) was added by Sec. 16 of the FAAct of 1973. 



133 

Foreign Service Act of 1946, as amended.'^^ Thereafter, compulsory 
contributions will be made with respect to each such participating 
officer or employee in accordance with the provisions of section 811 
of the Foreign Service Act of 1946, as amended.^^"^ 

(3) The provisions of section 636 and title VTII of the Foreign 
Service Act of 1946, as amended,^^* shall apply to participation in the 
Foreign Service Retirement and Disability System by any such officer 
or employee. 

(4) If an officer who becomes a participant in the Foreign Service 
lictirement and Disability System under paragraph (1) of this sub- 
section is appointed by the President, by and with the advice and 
consent of the Senate, or by the President alone, to a position in any 
agency of the United States Government, any United States delega- 
tion or mision to any international organization, in any international 
commission, or in any international body, such officer shall not, by vir- 
tue of the acceptance of such an appointment, lose his status as a par- 
ticipant in the system. 

(5) Any such officer or employee who becomes a participant in the 
F'oreign Service Retirement and Disability System under paragraph 
(1) of this subsection shall be mandatorily retired (A) at the end 
of the month in which he reaches age seventy, or (B) earlier if, during 
the third year after the effective date of this subsection, he attains 
age sixty-four or if he is over age sixty-four; during the fourth year 
at age sixty-three; during the fifth 3 ear at age sixty-two; during the 
sixth year at age sixty-one; and thereafter at the end of the month 
in which he reaches age sixty. However, no participant shall be man- 
datorily retired under this paragraph while serving in a position to 
which appointed by the President, by and with the advice and consent 
ol the Senate. Any participant who completes a period of authorized 
service after reaching the mandatory retirement age specified in this 
paragraph shall be retired at the end of the month in which such 
service is completed. 

(6) Whenever the President deems it to be in the public interest, he 
may extend any participant's service for a period not to exceed five 
years after the mandatory retirement date of such officer or employee. 

(7) This subsection shall become effective on the first day of the first 
month which begins more than one year after the date of its enactment, 
except that any officer or employee who, before such effective date, 
meets the requirements for participation in the Foreign Sendee Retire- 
ment and Disability System under paragraph (1) of this subsection 
may elect to become a participant before the effective date of this sub- 
section. Such officer or employee shall become a participant on the first 
day of the second month following the date of his application for 
earlier participation. Any officer or employee who becomes a partici- 
pant in the system under the provisions of paragraph (1) of this sub- 
section, who is age fifty-seven or over on the effective date of this 
subsection, may retire voluntarily at any time before mandatory retire- 
ment under paragraph (5) of this subsection and receive retirement 
benefits under section 821 of the Foreign Service Act of 1946, as 
amended.^^^ 



^Section 852 of the Foreign Service Act of 1946 was repealed in 1976. 

^' For text, see paj?e 547. 

^ For text, see pages 553 and 544, respectively. 

"» For text, see page 549. 



134 

(8) Any officer or employee who is separated for cause while a par- 
ticipant in the Foreign Service Retirement and Disability System 
pursuant to this subsection, shall be entitled to benefits in accordance 
with section 637 (b) and (d) of the Foreign Service Act of 1946, as 
amended. ^^" The provisions of subsection (e) of this section shall 
apply to participants in lieu of the provisions of sections 633 and 634 
of the P'oreign Service Act of 1946, a.s amended.-""^ 

Sec. 626.^'-^ Experts, Consultants, and Retired Officers. — (a) Ex- 
perts and consultants or organizations thereof may, as authorized by 
section 3109 of title 5 of the Tnited States ( Vxle,"-^ Ih' employed for the 
performance of functions under this Act, and individuals so employed 
may be compensated at rates not in excess of the daily equivalent of 
the highest rate which may be paid to an employee under the General 
Schedule established by section 5332 of title 5, United States Code,'^^" 
and while away from their homes or regular places of business, they 
may be paid actual travel expenses and i>er diem in lieu of subsistence 
at the applicable rate prescribed in the standardized Government travel 
regidations, as amended from time to time. Contracts for such employ- 
ment with such organizations, employment of personnel as experts and 
consultants, not to exceed ten in number, contracts for such employ- 
ment of retired military personnel with specialized research and de- 
velopment experience, not to exceed ten in number, and contracts for 
such employment of retired military personnel with specialized experi- 
ence of a broad politico-military nature, not to exceed five in number, 
may be renewed annually. 

(b)^^^ Service of an individual as an expert or consultant under sub- 
section (a) of this section shall not ^^''^ be considered as employment or 
holding OT office or position bringing such individual within the pro- 
visions of section 3323(a) ^"^^^ of title 5 of the United States Code. 

(c)^^® Persons of outstanding experience and ability may be em- 
ployed without compensation by any agency of the United States (jov- 

"0 For text, see page 533. 

s«i For text, see page 531. 

"3 22 U.S.C. S 2386. 

^T Sec. 302(e) (1) of the FAAct of August 1967 substituted "3109 of title ;") of the United 
states Code" In lieu of "15 of the Act of August 22, 1946, as amended (5 U.S.C. 55a)". 

se* The words to thl.s point beginning with "the daily equivalent of the highest rate" 
were substituted In lieu of "$100 per diem" by Sec. 603 of the International Security 
Assistance and Arms Export Control Act of 1976. 

6« Sec. 302(c) (1) of the FAAct of 1963 struck out the first sentence of this section since 
the subject matter therefore was superseded by P.L. 87-849, approved October 23, 1962. 
The first sentence formerly read as follows : "Service of an individual as an expert or 
consultant under subsection (a) of this section shall not be considered as service or em- 
ployment bringing such individual within the provisions of section 281, 283, or 284 of 
title 18 of the United States Code, or of section 190 of the Revised Statutes (5 U.S.C. 99), 
or of any other Federal law imposing restrictions, requirements, or penalties in relation 
to the employment of persons, the performance of services, or the payment or receipt of 
compensation in connection with any claim, proceeding, or matter involving the United 
States Government, except insofar as such provisions of law may prohibit any such indi- 
vidual from receiving compensation in respect of any particular matter in which such 
individual was directly involved in the performance of such service." 

5«8The words "Service of an individual as an expert or consultant under subsection (a) 
of this section shall not" were substituted for the words "Nor shall such service" by Sec. 
302(c) (2) of the FAAct of 1963. 

"■^ Sec. 126 of the International Development and Food Assistance Act of 1977 (91 
Stat. 542) added the words "section 3323(a)" and struck out the following: 

"Sections 3323(a) and 8344 of title 5 of the United States Code, section 872 of the 
Foreign Service Act of 1946, as amended, or any other law limiting the reemployment of 
retired officers or employees or governing the simultaneous receipt of compensation and 
retired pay or annuities, subject to section 5532." 

5«8 Sec. 302(d) of the FAAct of 1965 redesignated subsection <d) as subsection (c). For- 
mer subsection (c), which related to employment of retired officers, was repealed by the 
Dual Compensation Act (Public Law 88-448), August 19, 1964. 



I 



135 

emment for the performance of functions under this Act in accordance 
with the provisions of section 710 (b) of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2160(b)), and regulations issued 
thereunder. 

Sec. 627.^^^ Detail of Personnel to Foreign Governments. — 
Whenever the President determines it to be in furtherance of the pur- 
poses of this Act, the head of any agency of the United States Govern- 
ment is authorized to detail or assign any officer or employee of his 
agency to any office or position with any foreign government or foreign 
government agency, where acceptance of such office or position does not 
involve the taking of an oath of allegiance to another government or 
the acceptance of compensation or other benefits from any foreign 
country by such officer or employee. 

Sec. 628.^'° Detail of Personnel to International Organiza- 
tions. — Whenever the President determines it to be consistent with 
and in furtherance of the purposes of this Act, the head of any agency 
of the United States Government is authorized to detail, assign, or 
otherwise make available to any international organization any officer 
or employee of his agency to serve with, or as a member of, the inter- 
national staff of such organization, or to render any technical, scien- 
tific, or professional advice or service to, or in cooperation with, such 
organization. 

Sec. 629.^'^ Status of Personnel Detailed. — (a) Any officer or 
employee, while assigned or detailed under section 627 or 628 of this 
Act, shall be considered, for the purpose of preserving his allowances, 
privileges, rights, seniority, and other benefits as such, an officer or 
employee of the United States Government and of the agency of the 
United States Government from which detailed or assigned, and he 
shall continue to receive compensation, allowances, and benefits from 
funds appropriated to that agency or made available to that agency 
under this Act. 

(b) Any officer or employee assigned, detailed, or appointed under 
section 627, 628. 631, or 624(d) ^^^ of this Act is authorized to receive 
under such regulations as the President may prescribe, representation 
allowances similar to those allowed under section 901 of the Foreign 
Service Act of 1946, as amended ''^ (22 U.S.C. 1131). The authoriza- 
tion of such allowances and other benefits and the payment thereof 
out of any appropriations available therefor shall be considered as 
meeting all the requirements of section 5536 of title 5 of the United 
States Code.^^* 

Sec. 630."^ Terms of Detail or Assignment. — Details or assign- 
ments may be made under section 627 or 628 of this Act or section 408 
of the Mutual Security Act of 1954, as amended — ^ ' ^ 

(1) without reimbursement to the United States Government 
by the foreign government or international organization ; 

a» 22 use S 2387. 
5-0 22 use § 2388. 
"-^ 22 use § 2389. 

5'^ Sec. 302(d) of the FAAct of 1962 substituted "624(d)" for "624(e)". 
*^For text, see page 567. 

"*Sec. 302(f) of the FAAct of 1»67 substituted "5536 of title 5 of the United States 
Code" in lieu of "1765 of the Revised Statutes (5 U.S.C. 70)". 
»^ 22 use § 2390. 
^ For text, see page 227. 



136 

(2) upon agreement by the foreign government or interna- 
tional organization, to reimburse the United States Government 
for compensation, travel expenses, benefits,-'^^ and allowances, or 
any part thereof, payable to the officer or employee concerned 
during the period of assignment or detail; and such reimburse- 
ments (including foreign currencies) shall be credited to the 
appropriation, fund, or account utilized for paying such compen- 
sation, travel expenses, benefits,*^'^ or allowances, or to the appro- 
priation, fund, or account currently available for such purposes; 

(3) upon an advance of funds, property, or services by the 
foreign government or international organization to the United 
States Government accepted with the approval of the President 
for specified uses in furtherance of the purposes of this Act ; and 
funds so advanced may be established as a separate fund in the 
Treasury of the United States Government, to be available for the 
specified uses, and to be used for reimbursement of appropriations 
or direct expenditure subject to the provisions of this Act, any 
unexpended balance of such account to be returned to the foreign 
government or international organization ; or 

(4) subject to the receipt by the United States Government of 
a credit to be applied against the payment by the United States 
Government of its share of the expenses of the international or- 
ganization to which the officer or employee is detailed or assigned, 
such credit to be based upon the compensations, travel expenses, 
benefits ^^^ and allowances, or any part thereof, payable to such 
officer or employee during the period of detail or assignment in 
accordance with section 629. 

Sec. 631."^ Missions and Staffs Abroad. — (a) The President may 
maintain special missions or staffs outside the United States in such 
countries and for such periods of time as may be necessary to carry 
out the purposes of this Act. Each such special mission or staff shall 
be under the direction of a chief. 

(b) The chief and his deputy of each special mission or staff carry- 
ing out the purposes of part 1 shall be appointed by the President, 
and may, notwithstanding any other law, be removed by the Presi- 
dent at his discretion. Such chief shall be entitled to receive (1) in 
cases approved by the President, the same compensation and allow- 
ances as a chief of mission, class 3, or a chief of mission, class 4, within 
the meaning of the Foreign Service Act of 1946, as amended,^^^ or (2) 
compensation and allowances in accordance with section 625(d), as 
the President shall determine to be appropriate. 

(^Q^yso 'pj^g President may appoint any United States citizen who is 
not an employee of the United States Government or may assifm any 
United States citizen who is a United States Government employee to 
serve as Chairman of the Development Assistance Committee or any 
successor committee thereto of the Organization for Economic Coop- 
eration, and Development upon election thereto by members of said 
Committee, and, in his discretion, may terminate such appointment or 

577 The world "benefits" was added by Sec. 302(e) of the FAAct of 19«5. 

678 22 U.S.C. § 2391. 

679 For text, see pace 500. 

wo Subsection (c) was added by Sec. 302(d) of FAAct of 1963. 



137 

assignment, notwithstanding any other provision of law. Such person 
may receive such compensation and allowances as are authorized by 
the Foreign Service Act of 1946, as amended,^^^ not to exceed those 
authorized for a chief of nnssion, class 2, within the meaning of said 
Act, as the President may determine. Such person may also, in the 
President's discretion, receive any other benefits and perquisites 
available imder this Act to chiefs of special missions or staffs outside 
the United States established under this section. 

((J) 581 ^Vhei-ever practicable, especially in the case of the smaller 
programs, assistance under part I of this Act ^^^ shall be administered 
under the direction of the Chief of the United States Diplomatic Mis- 
sion by the principal economic officer of the mission.^®^ 

Sec. 632/^* Allocation and Reimbursement Among Agencies. — 
(a) The President may allocate or transfer to any agency of the 
United States Government any part of any funds available for car- 
rying out the purposes of this Act, mcluding any advance to the 
United States Government by any country or international organiza- 
tion for the procurement of commodities, defense articles, military 
education and training,^^^ or services (including defense services). 
Such funds shall be available for obligation and expenditure for the 
purposes for which authorized, in accordance with authority granted 
in this Act or under authority governing the activities of the agencies 
of the United States Government to which such funds are allocated 
or transferred. 

( b) Any officer of the United States Government carrying out func- 
tions under this Act may utilize the services (including defense serv- 
ices) and facilities of, or procure commodities, defense articles, or 
military education and training ^®^ from, any agency of the United 
States Government as the President shall direct, or with the consent 
of the head of such agency, and funds allocated pursuant to this sub- 
section to any such agency may be established in separate appropria- 
tion accounts on the books of the Treasury. 

(c) In the case of any commodity, service, or facility procured from 
any agency of the United States Government to carry out part I, reim- 
bursement or repayment shall be made to such agency from funds 
available to carry out such part. Such reimbursement or payment shall 
be at replacement cost, or, if required by law, at actual cost, or at any 
other price authorized by law and agreed to by the owning or dispos- 
ing agency. The amount of any such reimbursement or payment shall 
be credited to current applicable appropriations, funds, or accounts, 
from which there may be procured replacements of similar commodi- 
ties, services, or facilities, except that where such appropriations, 
funds, or accounts are not reimbursable except by reason of this sub- 

581 Subsection (d) was added by Sec. 302(f) of the FAAct of 1965. 

582 The reference to "part I" was added by Sec. 7(b)(1) of the International Security 
Assistance Act of 1977 (91 Stat. 617). 

583 The words "in the case of assistance under part I, and by the senior military officer 
of the mission in the case of assistance under part II". which had pre iously appeared at 
this point, were struck out by Sec. 7(b)(2) of the International Security Assistance Act 
of 1977 (91 Stat. 617). 

^ 22 use S 2392. 

BssTlie words ". military education and training" were added by Sec. 106(b) of the In- 
ternational Security Assistance and Arms Export Control Act of 1976. 

^ The word's ". f^efense articles, or military education and training" were substituted in 
lieu of "and defense articles" by Sec. 106(b) of the International Security Assistance and 
Arms Export Control Act of 1976. 



20-818 O - 78 - 10 



138 

section, and when the owning or disposing agency determines that 
such replacement is not necessary, any iunds received in payment tliere- 
for shall be deposited into the Treasury as miscellaneous receipts. 

(d) Except as otherwise provided in section 506,^^^ reimbursement 
shall be made to any United States Government agency, Irom funds 
available for use under part 11, for any assistance furnished under 
part II from, by, or through such agency. Such reimbursement shall 
be in an amount equal to the value (as defined in section 644 (m)) of 
the defense articles or of the defense services (other than salaries of 
members of the Armed Forces of the United States), or other assist- 
ance furnished, plus expenses arising from or incident to operations 
under part II. The amount of such reimbursement shall be credited to 
the current applicable appropriations, funds, or accounts of such 
agency. 

(e) In furnishing assistance under this Act, accounts may be estab- 
lished on the books of any agency of the United States Government 
or, on terms and conditions approved by the Secretary of the Treasury, 
in banking institutions in the United States, (1) against which letters 
of commitment may be issued which shall constitute recordable obli- 
gations of the United States Government, and moneys due or to be- 
come due under such letters of commitment shall be assignable under 
the Assignment of Claims Act of 1940, as amended (second and third 
paragraphs of 31 U.S.C. 203 and 41 U.S.C. 15), and (2) from which 
disbursements may be made to, or withdrawals may be made by, 
recipient countries or agencies, organizations, or persons upon presen- 
tation of contracts, invoices, or other appropriate documentation. Ex- 
penditure of funds which have been made available through accounts 
so established shall be accounted for on standard documentation re- 
quired for expenditure of funds of the United States Government: 
Provided^ That such expenditures for commodities, defense articles, 
military education and traininir,''^'' services (including defense serv- 
ices) , or facilities procured outside the United States may be accounted 
for exclusively on such certification as may be prescribed in regula- 
tions approved by the Comptroller General of the United States. 

(f) Credits made by the Export-Import Bank of Washington with 
funds allocated thereto under subsection (a) of this section or under 
section 522(a) of the Mutual Security Act of 1954, as amended, shall 
not be considered in determining whether the Bank has outstanding 
at any one time loans and guaranties to the extent of the limitation 
imposed by section 7 of the Export-Import Bank Act of 1945,°^^ as 
amended (12 U.S.C. 635e). 

(g) Any appropriation or account available to carry out provisions 
of part I may initially be charged in any fiscal year, within the limit of 
available funds, to finance expenses for which funds are available in 
other appropriations or accounts under part I : Provided^ That as of 
the end of such fiscal year such expenses shall be finally charged to 
applicable appropriations or accounts with proper credit to the appro- 
priations or accounts initially utilized for financing purposes: Pro- 
vided further^ That such final charge to applicable appropriations or 

587 Sec. 45(b)(3) of the Foreien Military Sales Act (Public Law 90-629) substituted 
"section 506" in lieu of sections 506, 522, and 523,". (See page 298). 

588 For text, see Vol. II, page 189. 



139 

accounts shall not be required in the case of expenses (other than those 
provided for under section 637(a) ) incurred in furnishing assistance 
by the agency primarily responsible for administering part I where 
it is determined that the accounting costs of identifying the applicable 
appropriation or account to which such expenses should be charged 
would be disproportionate to the advantage to be gained. 

Sec. 633.^«» Waivers of Certain Laws.— (a) Whenever the Presi- 
dent determines it to be in furtherance of the purposes of this Act, the 
functions authorized under this Act, may be performed without re- 
gard to such provisions of law (other than the Renegotiation Act of 
1951, as amended (50 U.S.C. App. 1211 et seci.) ), regulating the mak- 
ing, performance, amendment, or modification of contracts and the 
expenditure of funds of the United States Government as the Pres- 
ident may specify. ^^^ 

(b) The functions authorized under part II may be performed 
without regard to such provisions as the President may specify of the 
joint resolution of November 4, 1939 (54 Stat. 4), as amended. 

(c) Notwithstanding the provisions of sections 3544(b) and 8544(b) 
of title 10 of the United States Code, personnel of the Department of 
Defense may be assigned or detailed to any civil office to carry out this 
Act. [Referenced sections repealed by Public Law 90-235. See 10 
U.S.C. 973(b).] 

Sec 634.^^1 Reports and Information.— (a) ^^^ * * * [Repealed— 

1972] 

(b) The President shall, in the reports required by subsection (a) 
of this section, and in response to requests from Members of the Con- 
gress or inquiries from the public, make public all information con- 
cerning operations under this Act not deemed by him to be incom- 
patible with the security of the United States. In the case of each loan 
made from the Development Loan Fund established pursuant to sec- 
tion 201(a) the President shall make public appropriate information 
about the loan, including information about the borrower, the nature 
of the activity being financed, and the economic development objec- 
tives being served by the loan. 

(c) None of the funds made available pursuant to the provisions of 
this Act shall be used to carry out any provision of this Act in any 
country or with respect to any project or activity, after the expiration 
of the thirty-five-day period which begins on the date the General 
Accounting Office or any committee of the Congress charged with con- 
sidering legislation, appropriations or expenditures under this Act, 
has delivered to the office of the head of any agency carrying out such 
provision, a written request that it be furnished any document, paper, 
communication, audit, review, finding, recommendation, report, or 
other material in its custody or control relating to the administration 
of such provision in such country or with respect to such project or 
activity, unless and until there has been furnished to the General Ac- 
counting Office, or to such committee, as the case may be, (1) the docu- 
ment, paper, communication, audit, review, finding, recommendation, 

»» 22 use § 2393. 

«»See Executive Order 11223, ipage 266. 
^^^ 22 use § 2394. 

592 Subsection (a), relatinsr to report on fiscal year operations, was repealed by Sec. 
304(c) (2) of the FAAct of 1971. 



140 

report, or other material so requested, or (2) a certification by the 
President that he has forbidden the furnishing thereof pursuant to 
request and his reason for so doing. ''^^ . . 

(d) When requests are presented to the Congress for appropriations 
for fiscal year 1969 to carry out programs under this Act, the programs 
to be carried out with the ruiuls ai)piopriatcd for that fiscal year shall 
also be presented to the Committee on Foreign Relations of the Senate, 
if requested by the chairman of that committee, and to the Committee 
on Foreign Affairs of the House of Representatives, if requested by 
the chairman of that conimittee.^^' At the end of each fisca' year,"'^' 
the President shall notify the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate and the Speaker of 
the House of Representatives of all actions taken during the fiscal 
year '''■"' under this Act wliich resulted in furnishing assistance of a 
kind, for a purpose, or to an area, substantially different from that 
included in the presentation to the ('ongress during its consideration 
of this Act or any Act appropriating funds pursuant to authoriza- 
tions contained in this Act, or which resulted in obligations or reser- 
vations greater by 50 per centum or more than the proposed obliga- 
tions or reservations included in such presentation for the program 
concerned, and in his notification the President shall state the justi- 
fication for such changes. There shall also be included in the presen- 
tation material submitted to the Congress during its consideration of 
amendments to this Act, or of any Act appropriating funds pursuant 
to authorizations contained in this Act, a comparison of the current 
fiscal year programs and activities with those presented to the Con- 
gress in the previous year and an explanation of any substantial 
changes.^^^ Any such presentation material shall also include (1) a 
chart showing on a country-by-country basis the full extent of all 
United States assistance planned or expected for each such country for 
the next fiscal year, including economic assistance, military grants 
(and including for any such grant of any excess defense article, the 
value of such article expressed in terms of its acquisition cost to the 
United States), "^^^ ^^^ and sales under the Agricultural Trade Develop- 
ment and Assistance Act of 1954, as amended,''-*^ (2) details of pro- 
posed contributions by the United States to multilateral financial agen- 
cies, for the next fiscal year, and (3) a statement of projects, on a 
country-by-country basis for which financing w^as supplied during the 
last fiscal year through the Export-Import Bank.^°° In addition, the 
President shall promptly notify the Committee on Foreign Relations 
and the Committee on Appropriations of the Senate and the Speaker 
of the House of Representatives of any determination under section 

s»3 See also Sec. 624(d) (7) of this Act and Sec. 502 of the FA ApDropriation Act, 1972. 

s»*The first sentence was added bv Sec. 3a2(h)(l)(A) of the FAAct of 1967. 

5»5 Sec. 302(f) (1) of the FAAct of 1962 substituted the words "At the end of each fiscal 
year" and "fiscal year" for the words "In January of each year" and "preceding twelve 
months", respectively. 

^ This sentence was added by Sec. ■302(f) (2) of the FAAct of 1962. 

^^ Sec. 14 of the FAAct of 1974 sibstituted the words to this point, beginning with "in- 
cluding economic assistance ♦ * *" in lieu of "including economic assistance and military 
grants and sales". 

598 Sec. 209(b) of the International Security Assistance and Arms Export Control Act 
of 1976 struck out the words "and military sales, under this or any other Act". 

509 For text, see page 3;39. 

«"' With the exception of the additional worr's noted in footnote 597, this sentence was 
added by Sec. 302(h) (1) (B) of the FAAct of 1967. 



141 

303, 610(b),«°i ^j. 614(b) and of any findings, including his reasons 
therefor, under section 503 or 521 (c).^^^ 

(c) Tiie President shall include in his recommendation to the Con- 
gress for programs under this Act for each fiscal year a specific plan 
for each country receiving bilateral grant economic assistance 
whereby, wherever practicable, such grant economic assistance shall be 
progressive! V reduced and eventually terminated. 

(f J602 'pj^p^ President shall transmit to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of the Sen- 
ate a comprehensive report showing, as of September 30 and March 31 
of each year,^03 ^]^^ status of each loan and each contract of guarantee 
or insurance theretofore made under this Act, with respect to which 
there remains outstanding any unpaid obligation or potential liability ; 
the status of each sale of defense articles or defense services on credit 
terms, and each contract of guarantee in connection with any such sale, 
theretofore made under the Foreign ^Military Sales Act,^°* with respect 
to which there remains outstanding any unpaid obligation or potential 
liability ; the status of each sale of agriculture commodities on credit 
terms theretofore made under the Agricultural Trade Development 
and Assistance Act of 1954,^°^ with respect to which there remains out- 
standing any unpaid obligation ; and the status of each transaction in 
which a loan, contract of guarantee or insurance, or extension of credit 
(or participation therein) was theretofore made under the Export- 
Import Bank Act of 1945,^'^'^' with respect to which there remains out- 
standing any unpaid obligation or potential liability. Such report shall 
include individually only any loan, contract, sale, extension of credit, 
or other transaction listed in this subsection in excess of $1,000,000. 

(g)607 ^j^g President shall transmit to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of the 
Senate, not later than January 31 of each year, a comprehensive 
report, based upon the latest data available, showing — 

(1) a summary of the worldwide dimensions of debt-servicing 
problems among such countries, together with a detailed state- 
ment of the debt-servicing problems of each such country; 

(2) a summary of all forms of debt relief granted by the United 
States with respect to such countries, together with a detailed 
statement of the specific debt relief granted with respect to each 
such country and the purpose for which it was granted; 

601 Sec. 304(a)(3) of the FAAct of 1971 substituted "610(b)" in lieu of "610, 614(a)". 
The words to this point, beginning with "'and of any findings" were added by Sec. 302(h) 
(1) (C) of the FAAct of 1967. Sec. 521 was repealed by Sec. 45(a) of the Foreign Military 
Sales Act (P.L. 90-629). 

<»2 Subsection (f) was added by Sec. 302(c) of the FAAct of 1966. Sec. 17 of the FAAct 
of 1973 amended subsection (f). which formerlv read as fo'lows : 

"(f) The Secretary of the Treasury shall transmit to the Speaker of the House of Repre- 
sentatives and to the Committee on Foreign Relations of the Senate semiannual reports 
showing as of June 30 and December 31 of each year the repayment status of each loan 
theretofore made under authority of this Act any part of the principal or interest of which 
remains unpaid on the date of the report." 

^"''Sec. 6(1) of the Fiscal Year Adjustment Act (Public Law 94-273) replaced "June" 
and "December" with "September" and "March". 

*^ For text, see page 271. 

6^ For text, see page 339. 

6<» For text, see Vol. II, page 181. 

«^ Subsection (g) was added by Sec. 17 of the FAAct of 1973. Former subsection (g), 
which related to semiannual reports by the Secretary of State to the Congress of all 
exports of significant defense articles, was repealed by Sec. 45(a) of the Foreign Military 
Sales Act (Public Law 90-629). 



142 

(3) a summary of the worldwide effect of the debt relief 
granted by the United States on the availability of funds, author- 
ity, or other resources of the United States to make any such loan, 
sale, contract of guarantee or insurance, or extension of credit, 
together with a detailed statement of the effect of such debt relief 
with respect to each such country ; and 

(4) a summary of the net aid flow from the United States to 
such countries, taking into consideration the debt relief granted by 
the United States, together with a detailed analysis of such net 
aid flow with respect to each such country. 

(h)^"* The background documentvS transmitted to Congress in 
each fiscal year supporting requests for new authorizations and appro- 
priations to carry out the programs under part IT of this Act shall 
contain information concerning the proposed funding levels for mili- 
tary assistance and sales to South Vietnam. Thailand, and Laos. 

Sec. 6S5.^^^ General Authorities. — (a) Except as otherwise specif- 
ically provided in this Act, assistance under this Act may be fur- 
nished on a grant basis or on such terms, including cash, credit, or 
other terms of repayment (including repayment in foreign currencies 
or by transfer to the United States Government of commodities) as 
may be determined to be best suited to the achievement of the purposes 
of this Act, and shall emphasize loans rather than grants wherever 
possible. 

(b) The President may make loans, advances, and grants to, make 
and perform agreements and contracts with, or enter into other trans- 
actions with, any individual, corporation, or other body of persons, 
friendly government or government agency, whether within or with- 
out the United States and international organizations in furtherance 
of the purposes and within the limitations of this Act. 

(c) It is the sense of Congress that the President, in furthering the 
purposes of this Act, shall use to the maximum extent practicable the 
services and facilities of voluntary, nonprofit organizations registered 
with, and approved by, the Advisory Committee on Voluntary Foreign 
Aid. 

(d) The President may accept and use in furtherance of the pur- 
poses of this Act, money, funds, property, and services of any kind 
made available by gift, devise, bequest, grant, or otherwise for such 
purpose. 

(e) (l)^^o Any agency of the United States Government is author- 
ized to pay the cost of health and accident insurance for foreign par- 
ticipants in any program of furnishing technical information and 
assistance administered by such agency while such participants are 
absent from their homes for the purpose of participation in such 
program. 

(2)610 j^j^y agency of the United States Government is authorized 
to pay the cost of health and accident insurance for foreign employees 
of that agency while those employees are absent from their places of 
employment abroad for purposes of training or other official duties. 

«« Suhsection (h) was added by Sec. 302(h) (2) of the FAAct of 1967. 
«ro 22 use § 2395. 

810 Sec. 302(i)(l) of the FAAct of 1967 added paragraph designation "(1)" and para- 
graph (2). 



143 

(f ) Alien participants in any program of furnishing technical in- 
formation and assistance under this Act may be admitted to the United 
States if otherwise qualified as nonimmigrants under section 101(a) 
(15) of the Immigration and Nationality Act, as amended (8 U.S.C. 
1101(a) (15)), for such time and under such conditions as may be 
prescrilDed by regulations promulgated by the Secretary of State and 
the Attorney General.^^^ 

(g) In making loans ^^^ under this Act, the President — 

( 1 ) may issue letters of credit and letters of commitment ; 

(2) may collect or compromise any obligations assigned to, or 
held by, and any legal or equitable rights accruing to him, and, as 
he may determine, refer any such obligations or rights to the 
Attorney General for suit or collection ; 

(3) may acquire and dispose of, upon such terms and conditions 
as he may determine, any property, including any instrument evi- 
dencing indebtedness or ownership (provided that equity securi- 
ties may not be directly purchased although such securities may be 
acquired by other means such as by exercise of conversion rights 
or through enforcement of liens or pledges or otherwise to satisfy 
a previously incurred indebtedness), and guarantee payment 
against any such instrument ; 

(4) may determine the character of, and necessity for, obliga- 
tions and expenditures of funds used in making such loans and the 
manner in which they shall be incurred, allowed, and paid, subject 
to provisions of law specifically applicable to corporations of the 
United States Government ; and 

(5) shall cause to be maintained an integral set of accounts 
which shall be audited by the General Accounting Office in ac- 
cordance with principles and procedures applicable to commercial 
corporate transactions as provided by the Government Corpora- 
tion Control Act, as amended (31 U.S.C. 841 et seq.) . 

(h) A contract or agreement which entails commitments for the 
expenditure of funds ^^^ available under titles II, V, and VI "^ (ex- 
cept development loans)"* of chapter 2 of part I and under part II 
may, subject to any future action of the Congress, extend at any time 
for not more than five years. 

(i) Claims arising as a result of investment guaranty operations 
may be settled, and disputes arising as the result thereof may be arbi- 
trated with the consent of the parties, on such terms and conditions 
as the President may direct. Payment made pursuant to any such set- 
tlement, or as a result of an arbitration award, shall be final and con- 
clusive notwithstanding any other provision of law. 

(j) The provisions of section 955 of title 18 of the United States 
Code shall not apply to prevent any person, including any individual, 
partnership, corporation, or association, from acting for, or participat- 
ing in, any operation or transaction arising under this Act, or from 

«ltSu^ ^^^- PV^^ (15) (J) of the Immigration and Nationality Act (8 USiC § 1101). 
*». Ja * r'^^i^^««^i^^„^^^^^"' '"'bich appeared at this point, were added by Sec. 302(g) of 
the FAAct of 1965. Sec. 302 (i) (2) of the FAAct of 1967 provided that the words "and 
sales be deleted from this subsection, effective June 30, 1968. 

6u Sec. 302(g) of the FAAct of 1962 deleted the word "made" which appeared after 
the word funds" and substituted the words ". V, and VI ' for "and V" 
in^l^^^ words "(except development loans)" were added by Sec. 3()2(d) of the FAAct of 



144 

acquiring any obligation issued in connection with any operation or 
transaction arising under this Act. 

^j^j6i5 jYiiy cost-ty[)e contract or agreement (inchiding grants) en- 
tered into with a university, college, or other educational institution 
for the purpose of carrying out programs authorized by part I may 
provide for the payment of the reimbursable indirect costs of said 
university, college, or other educational institution on the basis of pre- 
determined fixed-percentage rates applied to the total or an element 
thereof, of the reimbursable direct costs incuned. 

Sec. 636.^^'^ Provisions on Uses of Funds. — (a) Appropriations 
for the purposes of or pursuant to this Act (except for Part II), 
allocations to anj^ agency of the United States Government, from 
other appropriations, for functions directly related to the purposes 
of this Act, and funds made available for other purposes to the agency 
primarily responsible for administering part I, shall be available for: 

(1) rent of buildings and space in buildings in the United 
States, and for repair, alteration, and improvements of such 
leased properties; 

(2) expenses of attendance at meetings concerned with the 
purposes of such appropriations of this Act, including (notwith- 
standing the provisions of section 9 of Public Law 60-328 (31 
U.S.C. 673)) expenses in connection with meetings and persons 
whose employment is authorized by section 626 ; 

(3) contracting with individuals for personal service abroad: 
Provided, That such individuals shall not be regarded as em- 
ployees of the United States Government for tlie purpose of any 
law administered by the Civil Service Commission ; 

(4) purchase, maintenance, operation, and hire of aircraft: 
Provided, That aircraft for administrative purposes may be pur- 
chased only as specifically provided for in an appropriation or 
other Act ; 

(5) purchase and hire of passenger motor vehicle: Provided^ 
That, except as may otherwise be provided in an appropriation 
or other Act, passenger motor vehicles for administrative pur- 
poses outside the ITnited States may be purchased for re])lacement 
only, and such vehicles may be exchanged or sold and replaced by 
an equal number of such vehicles and tTie cost, including exchange 
allowance, of each such replacement shall not exceed $3,500 in 
the case of an automobile for the chief of any special mission or 
staff outside the United States established under section 631 : Pro- 
vided further. That passenger motor vehicles other than one for 
the official use (without regard to the limitations contained in 
section 5 of Public Law 63-127. as amended (31 U.S.C. 
638a(c) (2) ),«i^ and section 201 of Public Law 85-468 (31 U.S.C. 
638(c) )^^^ of the head of the agency primarily responsible for 
administering part I, may be purchased for use in the United 
States only as may be specifically provided in an appropriation 
or other Act ; 

«^ Subsection (k) was added by Sec. 302(e) of the FAAct of 1963. 

«« 22 use § 2396. 

•n^'Sec. 302(j)(l) of the FAAct of 1967 substituted "(31 U.S.C. 638a(2)," for "(5 U.S.C. 
78(c)(2)". 

«i8 Sec. 302(j)(2) of the FAAct of 1967 substituted "(31 U.S.C. 638c)" for "(5 U.S.C. 
78a-l)". 



145 

(6) entertainment (not to exceed $25,000 in any fiscal year 
except as may otherwise be provided in an appropriation or other 
Act) ; 

(7) exchange of funds without regard to section 3651 of the 
Revised Statutes (31 U.S.C. 543) and loss by exchange; 

(8) expenditures (not to exceed $50,000 in any fiscal year ex- 
cept as may otherwise be provided in an appropriation or other 
Act) of a confidential character other than entertainment: Pro- 
vided^ That a certificate of the amount of such expenditure, the 
nature of which it is considered inadvisable to specify, shall be 
made by the head of the agency primarily responsible for admin- 
istering part I or such person as he may designate, and every 
such certificate shall be deemed a sufficient voucher for the amount 
therein specified ; ^^^ 

(9) insurance of official motor vehicles or aircraft acquired for 
use in foreign countries; 

(10) rent or lease outside the United States for not to exceed 
ten years of offices, buildings, grounds, and quarters, including 
living quarters to house personnel, and payments therefor in 
advance; maintenance, furnishings, necessary repairs, improve- 
ments, and alterations to properties owned or rented by the United 
States Government or made available for use to the United States 
Government outside the United States; and costs of fuel, water, 
and utilities for such properties; 

(11) expenses of preparing and transporting to their former 
homes, or, with respect to foreign participants engaged in any 
program under part I, to their former homes or places of burial, 
and of care and disposition of, the remains of persons or members 
of the families of persons who may die while such persons are 
away from their homes participating in activities carried out 
with funds covered by this subsection; 

( 12 ) purchase of uniforms ; 

(13) payment of per diem in lieu of subsistence to foreign 
participants engaged in any program under part I while such 
participants are away from their homes in countries other than the 
United States, at rates not in excess of those prescribed by the 
standardized Government travel regulations, notwithstanding any 
other provision of law ; 

(14) use in accordance with authorities of the Foreign Service 
Act of 1946, as amended ^^o (22 U.S.C. 801 et seq.), not otherwise 
provided for; 

(15) ice and drinking water for use outside the United States; 

(16) services of commissioned officers of the Environmental 
Science Services Administration ^^^ and for the purposes of pro- 
viding such services the Environmental Science Services Ad- 
ministration ^2^ may appoint not to exceed twenty commissioned 
officers in addition to those otherwise authorized ; 

(17) expenses in connection with travel of personnel outside 
the United States, including travel expenses of dependents (in- 



8i» See also Sec. 614(a) and 624(d) (7) of this Act. 
820 For text, see pajre 500. 

«2iSec. 302 (k) of the FAAct of 1967 suhstituted "Environmental Science Service Ad- 
ministration" In lieu of "Coast and Geodetic Survey." 



146 

eluding expenses during necessary stopovers while engaged in 
such travel), and transportation of personal effects, household 
goods, and automobiles of such personnel when any part of such 
travel or transportation begins in one fiscal year pursuant to 
travel orders issued in that fiscal year, notwithstanding the fact 
that such travel or transportation may not be completed during 
the same fiscal year, and cost of transporting automobiles to and 
from a place oi storage, and the cost of storing automobiles of 
such personnel when it is in the public interest or more economical 
to authorize storage. 

(b) Funds made available for the purposes of this Act may be used 
for compensation, allowances, and travel of personnel including For- 
eign Service personnel whose services are utilized primarily for the 
purposes of this Act, for printing and binding without regard to the 
provisions of any other law, and for expenditures outside the United 
States for the procurement of supplies and services and for other 
administrative and operating purposes (other than compensation of 
personnel) without regard to such laws and regulations governing 
the obligation and expenditure of funds of the United States Govern- 
ment as may be necessary to accomplish the purposes of this Act. 

(c) Notwithstanding any other law, not to exceed $3,000,000 of the 
funds available for assistance under this Act (other than title I of 
chapter 2 of part I) may be used in any fiscal year (in addition to 
funds available for such use under other authorities in this Act) to 
construct or otherwise acquire outside the United States (1) essential 
living quarters, office space, and necessary supporting facilities for 
use of personnel carrying out activities authorized by this Act, and 
(2) schools (including dormitories and boarding facilities) and hos- 
pitals for use of personnel carrying out activities authorized by this 
Act, United States Government personnel, and their dependents. In 
addition, funds made available for assistance under this Act (other 
than title I of chapter 2 of part I) may be used, notwithstanding any 
other law, to equip, staff, operate, and maintain such schools and 
hospitals. 

(d) Not to exceed $2,500,000 "^ of funds available for assistance 
under this Act (other than title I of chapter 2 of part I) may be used 
in any fiscal year to provide assistance, on such terms and conditions 
as are deemed appropriate, to schools established, or to be established, 
outside the United States whenever it is determined that such action 
would be more economical or would best serve the interests of the 
United States in providing for the education of dependents of per- 
sonnel carrying out activities authorized by this Act and dependents 
of United States Government personnel, in lieu of acquisition or con- 
struction pursuant to subsection (c) of this section. 

(e) Funds available under this Act (other than title T of chapter 
2 of part I) may be used to pay costs of training United States citizen 
personnel employed or assigned pursuant to section 625(d)(2) 
(through interchange or otherwise) at any State or local unit of gov- 
ernment, public or private nonprofit institution, trade, labor, agri- 
cultural, or scientific association or organization, or commercial firm; 

•23 Sec. 802(1) of the FAAct of 1967 substituted "$2,500,000" in lieu of "$1,500,000". 



147 

and the provisions of Public Law 84-918 (7 U.S.C. 1881 et seq.) may 
be used to carry out the foregoing authority notwithstanding that 
interchange of personnel may not be involved or that the training may 
not take place at the institutions specified in that Act. Such training 
shall not De considered employment or holding of office under section 
5533 of title 5 of the United States Code,®^^ and any payments or con- 
tributions in connection therewith may, as deemed appropriate by the 
head of the agency of the United States Government authorizing such 
training, be made by private or public sources and be accepted by any 
trainee, or may be accepted by and credited to the current applicable 
appropriation of such agency : Provided^ however^ That any such pay- 
ments to any employee m the nature of compensation shall be in lieu, 
or in reduction, of compensation received from the United States 
Government. 

(f) Funds made available under section 212 may be used for ex- 
penses (other than those provided for under section 637(a) ) to assist 
in carrying out functions under title I of chapter 2 of part I, under 
the Agricultural Trade Development and Assistance Act of 1954, as 
amended ^2* (7 U.S.C. 1691 et seq.), and under the Latin American 
Development Act, as amended ^^^ (22 U.S.C. 1942 et seq.), performed 
by the agency primarily responsible for administering part I or by 
the Corporation established under title IV of chapter 2 of part I with 
respect to loan activities which it carries out under the provisions of 
the Agricultural Trade Development and Assistance Act of 1954, as 
amended.^^^ 

(g) Funds made available for the purposes of part II shall be avail- 
able for — 

(1) administrative, extraordinary (not to exceed $300,000 in 
any fiscal year), and operating expenses incurred in furnishing 
defense articles, military education and training ^^^ and defense 
services on a grant or sales basis by the agency primarily responsi- 
ble for administering part II ; ®^^ 

(2) reimbursement of actual expenses of military officers de- 
tailed or assigned as tour directors in connection with orientation 
visits of foreign military and related civilian personnel,®^^ in 
accordance with the provisions of section 5702(c) of title 5 of 
the United States Code,®^° applicable to civilian officers and em- 
ployees; and 

(3) maintenance, repair, alteration, and furnishing of United 
States-owned facilities in the District of Columbia or elsewhere 
for the training of foreign military and related civilian person- 



«2«Sec. 302(m) of the FAAct of 1967 substituted "5533 of title 5 of the United States 
Code in lieu of "301 of the Dual Compensation Act (5 U.S.C. 3105)". 

63* For text, see '^age 339. 

«25 Sec. 302(h)(2) of the FAAct of 1965 substituted the words "Latin American De- 
velopment Act, as amended" for "Act to Provide for assistance in the development of Latin 
America and in the reconstruction of Chile, and for other purposes". See page 211. 

82« The words to this Doint, beginning with "or by the Corporation", were added by 
Sec. .S06 of the FAAct of 1969. 

^'T The words ", military education and training" were added by Sec. 106(b) of the In- 
ternational Security Assistance and Arms Export Control Act of 1976. 

628 The words to thi<? point, beginning with "incurred in furnishing" (except as noted in 
footnote 627) were added by Sec. 302(d) of the FAAct of 1968. 

«* The words "and related civilian personnel" were substituted in lieu of "personnel" 
by Sec. 106(b) of the International Security Assistance and Arms Export Control Act of 
1976. 

««> Sec. 302 (n) of the FAAct of 1967 substituted "5702(c) of title 5 of the United States 
Code ' in lieu of "3 of the Travel Expense Act of 1949, as amended (5 U.S.C. 836),'. 



148 

nel ®^® without regard to the provisions of section 3733 of the 
Revised Statutes (41 U.S.C. 12) or other provision of law re- 
quiring a specific authorization or specific appropriation for such 
public contracts. 

(h)^"^ In carrying out progi-ams under this Act, the President shall 
take all appropriate steps to assure that, to the maximum extent 
possible, (1) countries receiving assistance under this Act contribute 
local currencies to meet the cost of contractual and other services 
rendered in conjunction with such programs, and (2) foreign curren- 
cies owned by the United States are utilized to meet the costs of such 
contractual and other services. 

^j^G32 Notwithstanding section 640 or any other provision of this 
Act, none of the funds made available to carry out this Act shall be 
used to finance the purchase, sale, long-term lease, exchange, or 
guaranty of a sale of motor vehicles unless such motor vehicles are 
manufactured in the United States: Provided^ That where special 
circumstances exist the President is authorized to waive the provisions 
of this section in order to carry out the purposes of this Act. 

Sec. 637/^^ Administrative Expenses. — (a) There is hereby au- 
thorized to be appropriated to the President for each of the fiscal years 
1974 and 1975, $45,000,000,^^* for necessary administrative expenses of 
the agency primarily responsible for administering part I. The 
agency administering part I shall reduce the number of personnel, 
particularly administrative personnel, employed by it in order to 
conduct operations with the reduced amount of funds authorized for 
fiscal year 1969, except that such agency shall not take any action to 
limit or reduce auditmg or trading activities of such agency .^^^ 

(b) There is hereby authorized to be appropriated ^^^ such amounts 
as may be necessary from time to time for administrative expenses 
which are incurred for functions of the Department of State under 
this Act and unrepealed provisions of the Mutual Security Act of 
1954, as amended, or for normal functions of the Department of State 
which relate to such functions.^" . 

Sec. 638.''*3^ Exclusions.^^^ — No provision of this Act shall be con- \ 
strued to prohibit assistance to any country pursuant to the Peace 
Corps Act, as amended ; ^*° the Mutual Educational and Cultural Ex- 
change Act of 1961, as amended; ^^^ or the Export-Import Bank Act 
of 1945, as amended.«*2 643 



«3i Subsection (h) was added by Sec. 302(f) of the FAAct of 1963. 

•32 Subsection (i) was added by Sec. 302 (o) of the FAAct of 1967. 

633 22 use 2397. 

«"The words "for each of the fiscal years 1974 and 1975, $45,000,000 were substituted 
in lieu oTf "for the fiscal year 1972, $50,000,000, and for the fiscal year 1973, $50,000,000 ' 
by Sec. 18 of the FAAct of 1973. 

FA Appropriation Act. 1975 : $40,000,000. 

«^ Tlie last sentence was added by Sec. 302(e) of the FAAct of 1968. 

636 The words "to the Secretary of State", which appeared at this point, were deleted by 
Sec. 302(h) (2) of the FAAct of 1962. 

«37 FA Appronriation A( t. 1975 : $4,800,000 as authorized by thi.s section and by sec. 
305 of the Mutual Defense Assistance Control Act of 1951. as amended. For text of 
Mntu 1 Defen e Assistance Contrcl Vt see ■ ge "^^^l 

63" 22 use 2398. Sec. 638 was added by Sec. 302(h) of the FAAct of 1963. 

63»The word "EXeLUSIONS" was substituted in lieu of "PEACE CORPS ASSIST- 
ANCE" by Sec. 19 of the FAAct of 1973. 

«*o For text, see page 389. 

"1 22 use § 2451. 

e« 12 use § 635. 

6*3 The words " : or famine or disaster relief, including such relief through voluntary 
apencies, under title II of the Agricultural Trade Development an'^ Ass^«*^ance Act of 1954, 
as amended", which appeared at this point, were struck out by Sec. 202 (j) of the FAAct 
of 1965. 



149 

Sec. e39.«*^«*= Famine or Disaster Relief.—* * * [Repealed— 
1975] 
Sec. 640.«'*« Military Sales.—* * * [Repealed— 1968] 
Sec. 640A.«^^ False Claims and Ineligible Commodities. — 

(a) Any person who makes or causes to be made or presents or causes 
to be presented to any bank or other financial institution or to any 
ofiicer, agent, or employee of any agency of the United States Gov- 
ernment a claim for payment from funds made available under this 
Act for the purposes of furnishing assistance and who knows the 
claim to be false, fraudulent, or fictitious or to cover a commodity or 
commodity-related service determined by the President to be ineligi- 
ble for payment from funds made available under this Act, or who 
uses to support his claim any certification, statement, or entry on any 
contract, bill of lading, Government or commercial invoice, or Gov- 
ernment form, which he knows, or in the exercise of prudent business 
management should know, to contain false, fraudulent, or fictitious 
information, or who uses or engages in any other fraudulent trick, 
scheme, or device for the purpose of securing or obtaining, or aiding to 
secure or obtain, for any person any benefit or payment from funds 
so made available under this Act in connection with the negotiation, 
procurement, award, or performance of a contract financed with funds 
so made available under this Act, and any person who enters into an 
agreement, combination or conspiracy so to do, (1) shall pay to the 
United States an amount equal to 25 per centum of any amount there- 
by sought to be wrongfully secured or obtained but not actually re- 
ceived, and (2) shall forfeit and refund any payment, compensation, 
loan, commission, or advance received as a result thereof, and (3) shall, 
in addition, pay to the United States for each such act (A) the sum 
of $2,000 and double the amount of any damage which the United 
States may have sustained by reason thereof, or (B) an amount equal 
to 50 per centum of an}^ such payment, compensation, loan, commis- 
sion, or advance so received, whichever is the greater, together with 
the costs of suit. 

(b) In order to secure recovery under this section, the President 
may, as he deems appropriate, (1) institute suit in the United States 
district court for any judicial district in which the person alleged to 
have performed or participated in an act described by this section may 
reside or may be found, and (2) upon posting by registered mail to 
such person a notice of claim describing the basis therefor and identi- 
fying the funds to be withheld, withhold from funds owed by any 
agency of the United States Government to such person an amount 
equal to the refund, damages, liquidated damages, and exemplary 
damages claimed by the United States under this section. Any such 
withholding of funds from any person shall constitute a final deter- 
mination of the rights and liabilities of such person under this sec- 
tion with respect to the amount so withheld, unless within one year of 
receiving the notice of claim such person brings suit for recovery, 
which is hereby authorized, against the United States in any United 
States district court. 



lerdl^St^^t^'slqr*"^ ^^ Disaster Relief was repealed by Sec. 101(6) of Public Law 94- 

«« Former sections &39A and 639B were redesignated as sections 494A and 4«4B, re- 
spectively, by Sec. 101 (5) of Public Law 94-161 (89 Stat. 849). 

r.^ o^^*".^- /l^^ '^^^'^ repealed by Sec. 45(a) of the Foreign Military Sales Act (Public Law 
90-269). (See page 298.) 

•*' 22 use 2399b. Sec. 640A was added by Sec. 302(f) of the FAAct of 1968. 



150 

(c) For purposes of this section, the term "person" includes any 
individual corporation, partnership, association, or other lep:al entity. 

Sec. 640B. Coordination.^*^— (a) The President shall establish a 
system for coordination of United States policies and programs which 
aflfect United States interests in the development of low-income coun- 
tries. To that end, the President shall establish a Development Coordi- 
nation Committee which shall advise him with respect to coordina- 
tion of United States policies and programs affecting the development 
of the developing countries, including programs of bilateral and mul- 
tilateral development assistance. The Committee shall include the head 
of the agency primarily responsible for administering part I, Chair- 
man, and representatives of the Departments of State, Treasury, Com- 
merce, Agriculture, and Labor, the Executive Office of the President 
and other executive departments and agencies, as the President shall 
designate. The Committee shall advise the President concerning the 
degree to which bilateral and multilateral development assistance 
should focus on critical problems in those functional sectors which 
affect the lives of the majority of people in the developing countries: 
food production; rural development and nutrition; population plan- 
ning and health; and education, public administration, and human 
resource development.®*^ 

(b) The President shall prescribe appropriate procedures to assure 
coordination among — 

(1) the various departments and agencies of the United States 
Government having representatives in diplomatic missions 
abroad ; and 

(2) representatives of the United States Government in each 
country, under the direction of the Chief of the United States 
Diplomatic Mission. 

The President shall keep the Congress advised of his actions under 
this subsection. 

(c) Programs authorized by this Act shall be undertaken with the 
foreign policy guidance of the Secretary of State. 

(d)®^° The President shall report to the Congress during the first 
quarter of each calendar year on TTnited States actions affecting the 
development of less developed countries. The report shall include (1) 
a comprehensive and coordinated review of all United States policies 
and programs having a major impact on the development of such 
countries, including but not limited to the areas of bilateral and multi- 
lateral assistance, trade, commodities, monetary affairs, private invest- 
ment, debt, employment, food, energy, technology, population, oceans, 
environment, human settlements, natural resources, and participation 
in international agencies concerned with development; and (2) an 
assessment of the impact of such policies and programs on (A) 
national employment, wages, and working conditions in the United 



«*8 22 use 2399c. Sec. 640B was added by Sec. 21 of the FAAct of 1973. 

»*»This sentence was added by Sec. 127(a) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 542). 

s^* Subsection (d) was amended and restated by Sec. 127(b) of the International 
Development and Food Assistance Act of 1977 (01 Stat. 542). It formerly read as 
follows : 

"(d) The President shall report to the Congress during: the first quarter of each 
calendar year on United States actions afTectine: the development of the low-income 
countries and on the impact of those undertakincrs upon the national income, employ- 
ment, wages, and working conditions In the United States." 



151 

States, as well as other aspects of the United States economy, and (B) 
the well-being of the poor in the less developed countries in accordance 
with the approach to development outlined in subsections (c) and (d) 
of section 102 of this Act. 

(g^65i 'pj^g h-ead of any of the departments or agencies referred to in 
subsection (a) may temporarily assign, upon the request of the Chair- 
man, any employee from such department or agency to the staff of the 
Committee. 

^f^65i 'Pq carry out the purposes of subsection (a), the Committee 
shall— 

(1) prepare studies on various development problems; 

(2) devise implementation strategies on developmental prob- 
lems appropriate to each such department or agency ; 

(3) monitor and evaluate the results of the development activi- 
ties of each such department or agency ; and 

(4) arrange for the exchange of information and studies be- 
tween such agencies and departments. 

^g^65i jjj j^jg annual report to the Congress pursuant to subsection 
(d), the President shall include a report on the Committee's opera- 
tions pursuant to subsection (f). 

Sec. ^OC.^52 Shipping Differential. — For the purposes of facilitat- 
ing implementation of section 901(b) of the Merchant Marine Act, 
1936 (46 U.S.C. 1241(b)), funds made available for the purposes of 
chapter 1 of part I or for purposes of Part V may be used to make 
grants to recipients to pay all or any portion of such differential as is 
determined by the Secretary of Commerce to exist between United 
States and foreign-flag vessel charter or freight rates. Grants made 
under this section shall be paid with United States-owned foreign 
currencies wherever feasible. 

Chapter 3 — Miscellaneous Provisions 

Sec. 641.^53 Effective Date and Identification of Programs. — 
This Act shall take effect on the date of its enactment. Programs 
under this Act shall be identified appropriately overseas as "American 
Aid". 

Sec. 642. Statutes Repealed. — (a) There are hereby repealed — 

( 1 ) Reorganization Plan Numbered 7 of 1953 ; 

(2) the Mutual Security Act of 1954, as amended (except sec- 
tions ^^^ 402, 408, 417, 502(a), 502(b), 514, 523(d) and 536; «" ese 



*^ Subsection (e). (f), and (g) were added by Sec. 127(c) of the International Devel- 
opment and Food Assistance Act of 1977 (91 Stat. 543). 

652 22 use 2399d. Sec. 640C was added by Sec. 21 of the FAAct of 1973. 

6^^ 22 use 5 2401. 

«^Sec. 303(a) of the FAAct of 1965 struck out section 143 of the Mutual Security Act 
of 1954 as amended, which was retained by the FAAct of 1961. 

*^ Fo'- text see Retained Pro'is'ons. pace 227. Subfjc^tion (a), (c). and (d) of Sec. 405 
of the Mutual Security Act of 1954, as amended, and subsection (c) of Sec. 451 of the said 
Act. which were retained by the Foreign Assistance Act of 1961. were repealed by Sec. 6 
of the Migration and Refugee Assistance Act of 1962 (Public Law 87-510). Sec. 414 of the 
Mutual Security Act of 1954. as amended, was repealed by Sec. 212(b) of the International 
Security Assistance and Arms Export eontrol Act of 1976. 

««The words ": Provided. That until the enactment of legislation authorizing and ap- 
propriating funds for activities heretofore carried on pursuant to sections 405(a), 405(c), 
40o(d). and 451 'c) of the Mutunl Securitv Act of 19n4. as amended, such activities may 
be continued with funds made available under section 451 (a) of this Act", which appeared 
at this point, were struck out by Sec. 303(a) of the FAAct of 1965. 



152 

(3) section 12 of the Mutual Security Act of 1955 ; 

(4) sections 12, 13, and 14 of the Mutual Security Act of 1956; 

( 5 ) section 503 of the Mutual Security Act of 1958 ; 

(6) section 108 of the Mutual Security Appropriation Act, 
1959; 

(7) section 501(a) , chapter VI, and sections 702 and 703 of the 
Mutual Security Act of 1959, as amended ; and 

(8) section 604 and chapter VIII of the Mutual Security Act 
of 1960. 

(b) References in law to the Acts, or provisions of such Acts, re- 
pealed by subsection (a) of this section shall hereafter be deemed to 
be references to this Act or appropriate provisions of this Act. 

(c) The repeal of the Acts listed in subsection (a) of this section 
shall not be deemed to affect amendments contained in such Acts to 
Acts not named in that subsection. 

Sec. 643.^" Saving Provisions. — (a) Except as may be expressly 
provided to the contrary in this Act, all determinations, authorizations, 
regulations, orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provision of law 
repealed by section 642(a) and the Foreign Assistance Act of 1969 ^^^ 
shall continue in full force and effect until modified by appropriate 
authority. 

(b) Wherever provisions of this Act establish conditions which must 
be complied with before use may be made of authorit}^ contained in, or 
funds authorized by, this Act, compliance with, or satisfaction of, sub- 
stantially similar conditions under Acts listed in section 642(a) and 
the Foreign Assistance Act of 1969 ^^^ or Acts repealed by those Acts 
shall be deemed to constitute compliance with the conditions estab- 
lished by this Act. 

(c) Funds made available pursuant to provisions of law repealed by 
section 642(a)(2) and the Foreign Assistance Act of 1969^^^ shall, 
unless otherwise authorized or provided by law, remain available for 
their original purposes in accordance with the provisions of law orig- 
inally applicable thereto, or in accordance with the provisions of law 
currently applicable to those purposes. 

((J) 660 * * * [Repealed— 1962] 

Sec. 644.*^^! Definitions. — As used in this Act — 

(a) "Agency of the United States Government" includes any agency, 
department, board, wholly or partly owned corporation, instrumen- 
tality, commission, or establishment of the United States Government. 

(b) "Armed Forces" of the United States means the Army, Navy, 
Air Force, Marine Corps, and Coast Guard. 

(c) "Commodity" includes any material, article, supply, goods, or 
equipment used for the purposes of furnishing nonmilitary assistance. 

(d) "Defense article" includes — 

(1) any weapon, weapons system, munition, aircraft, vessel, 
boat, or other implement of war; 



®^" 22 use § 2402. 

6^ The words "and the Foreign Assistance Act of 1969" were added by Sec. 308 of the 

«5« The words "and the Foreign Assistance Act of 1969" were added by Sec. 308 of the 
PAAct of 1969. 

«» Subsection (d) was repealed by Sec. 303(a) of the FAAct of 1962. 
««i22 use §403. 



153 

(2) any property, installation, commodity, material, equipment, 
supply, or goods used for the purposes of furnishing military 
assistance ; 

(3) any machinery, facility, tool, material, supply, or other item 
necessary for the manufacture, production, processing, repair, 
servicing storage, construction, transportation, operation, or use 
of any article listed in this subsection ; or 

(4) any component or part of any article listed in this sub- 
section; but 

shall not include merchant vessels or, as defined by the Atomic Energy 
Act of 1954, as amended (42 U.S.C. 2011), source material, byproduct 
material, special nuclear material, production facilities,^^^ utilization 
facilities, or atomic weapons or articles involving Kestricted Data.^^^ 

(e) "Defense information" includes any document, writing, sketch, 
photograph, plan, model, specification, design, prototype, or other re- 
corded or oral information relating to any defense article or defense 
service, but shall not include Kestricted Data^^^ as defined by the 
Atomic Energy Act of 1954, as amended, and data removed from the 
Restricted Data category under section 142d of that Act. 

(f ) 66* "Defense service" includes any service, test, inspection, repair, 
publication, or technical or other assistance or defense information 
used for the purposes of furnishing military assistance, but does not 
include military educational and training activities under chapter 5 
of part II. 

(g)665 "Excess defense articles" means the quantity of defense arti- 
cles owned by the United States Government, and not procured in 
anticipation of military assistance or sales requirements, or pursuant 
to a military assistance or sales order, which is in excess of the 
Approved Force Acquisition Objective and Approved Force Reten- 
tion Stock of all Department of Defense Components at the time such 
articles are dropped from inventory by the supplying agency for 
delivery to countries or international organizations under this Act. 

(h) "Function" includes any duty, obligation, power, authority, 
responsibility, riffht, privilege, discretion, or activity. 

(i)666 * * * [Repealed— 1973] 

«2Sec. 303(a)(1) of the FAAct of 1967 added the words "production facilities, utiliza- 
tion facilities," and "or articles involving Restricted Data." 

««3 Sec. 303(a)(2) of the F^Act of 1967 struck out the words "and formerly Restricted 
Data" which appeared after the words "Restricted Data," and added the words beginning 
with ", and data removed." 

««* Subsection (f) was amended by Sec. 106(b) of the International Security Assistance 
and Arms Export Control Act of 1976. It formerly read as follows : 

"Defense service" includes any service, test, inspection, repair, training, publication, or 
technical or other assistance, or defense information used for the purposes of furnishing 
military assistance. "Training" includes formal or informal instruction of foreign students 
in the United States or overseas by officers or employees of the United States, contract 
technicians, contractors (including instruction at civilian institutions), or by correspond- 
ence courses, technical, educational, or information publications and media of all kinds, 
training aid, orientation, training exercise, and military advice to foreign military units 
and forces. 

«6s Sec. 22(1) of the FAAct of 1973 amended subsection (g), which formerly read as 
follows : 

"(g) 'Excess defense articles' means the quantity of defense articles owned by the 
United States Government, and not procured in anticipation of military assistance or sales 
requirements, or pursuant to a military assistance or sales order, which is in excess of the 
mobilization reserve at the time such articles are dropped from inventory by the supplying 
agency for deliverv to countries or international organizations under this Act." 

6«a Subsection (i), which related to mobilization reserve, was repealed by Sec. 22(2) of 
the FAAct of 1973. 



20-818 O - 78 



154 

(j) "Officer or employee" means civilian personnel and members of 
the Armed Forces of the United States Government. 

(k) "Services*' include any service, repair, training of personnel, 
or technical or other assistance or information used for the purposes 
of furnishing nonmilitary assistance. 

(1) "Surplus agricultural commodity" means any agricultural com- 
modity or product thereof, class, kind, type, or other specification 
thereof, produced in the United States either publicly or privately 
owned, which is in excess of domestic requirements, adequate carry- 
over, and anticipated exports for United States dollars, as determined 
by the Secretary of Agriculture. 

(m)®^^ "Value" means — 

(1) with respect to an excess defense article, the actual value 
of the article plus the gross cost incurred by the United States 
Government in repairing, rehabilitating, or modifying the article, 
except that for purposes of section 632(d) such actual value shall 
not be taken into account ; 

(2) with respect to a nonexcess defense article delivered from 
inventory to foreign countries or international organizations 
under this Act, the acquisition cost to the United States Govern- 
ment, adjusted as appropriate for condition and market value; 

(3) with respect to a nonexcess defense article delivered from 
new procurement to foreign countries or international organiza- 
tions under this Act, the contract or production costs of such 
article; and 

(4) with respect to a defense service, the cost to the United 
States Government of such service. 

(n)^® "Military education and training" includes formal or infor- 
mal instruction of foreign students in the Uniled States or overseas by 
officers or employees of the United States, contract technicians, con- 
tractors (including instruction at civilian institutions), or by corre- 
spondence courses, technical, educational, or information publications 
and media of all kinds, training aids, orientation, and military advice 
to foreign military units and forces. 

"•Sec. 22(3) of the FAAct of 19T3 amended subsection (m), which formerly read as 
follows : 

"(m) 'Value* means, other than in section 657 of this Act — 

"(1) with respect to excess defense articles, the gross cost incurred by the United 
States Government in repairing, rehabilitating, or modifying such articles ; 

"(2) with respect to nonexcess defense articles delivered from inventory to coun- 
tries or international organizations under this Act. the standard price in effect at the 
time such articles are dropped from inventory by the supplying agency. Such standard 
price shall be the same price (including authorized reduced prices) used for transfers 
or sales of such articles in or between the Armed Forces of the United States Govern- 
ment, or. where such articles are not transferred or sold in or between the Armed 
Forces of the United States, the gross cost to the United States Government adjusted 
as appropriate for condition and market value ; and 

"(3) with respect to nonexcess defense articles delivered from new procurement to 
countries or international organizations under this Act, the contract or production 
costs of such articles. 
Military assistance programs and orders shall be based upon the best estimates of stock 
status and prevailing prices : reimbursements to the supplying agency shall be made on the 
basis of the stock status and prices determined pursuant to this section. Notwithstanding 
the foregoing provisions of this section, the Secretary of Defense may prescribe regulations 
authorizing reimbursements to the supplying agency based on negotiated prices for air- 
craft, vessels, plant equipment and such other major items as he may specify : Provided, 
That such articles are not excess at the time such prices are negotiated : Provided further. 
That such prices are negotiated at the time firm orders are placed with the supplying 
agenr^." 

"« Subsection (n) was added bv Sec. 106(b) of the International Security Assistance 
and Arms Export Control Act of 1976. 



155 

Sec. 645.^^^ Unexpended Balances. — Unexpended balances of 
funds made available pursuant to this Act, the Mutual Security Act 
of 1954, as amended, or the Latin American Development Act, as 
amended,^^" are hereby authorized to be continued available for the 
general purposes for which appropriated, and may at any time be 
consolidated, and, in addition, may be consolidated with appropria- 
tions made available for the same general purposes under the authority 
of this Act. 

Sec. 646.^'' Construction.— If any provision of this Act, or the 
application of any provision to any circumstances or persons shall be 
held invalid, the validity of the remainder of this Act, and of the 
applicability of such provision to other circumstances or persons shall 
not be affec^ted thereby. 

Sec. 647.^^2 Dependable Fuel Supply.— It is of paramount im- 
portance that long-range economic plans take cognizance of the need 
for a dependable supply of fuels, which is necessary to orderly and 
stable development and growth, and that dependence not be placed 
upon sources which are inherently hostile to free countries and the 
ultimate well-being of economically underdeveloped countries and 
which might exploit such dependence for ultimate political domina- 
tion. The agencies of government in the United States are directed to 
work with other countries in developing plans for basing develop- 
ment programs on the use of the large and stable supply of relatively 
low cost fuels available in the free world. 

Sec. 648.^^2 Special Authorization for Use of Foreign Cur- 
rencies.-7-Subject to the provisions of section 1415 of the Supple- 
mental Appropriation Act, 1953,^^* the President is authorized, as a 
demonstration of good will on the part of the people of the United 
States for the Polish and Italian people, to use foreign currencies 
accruing to the United States Government under this or any other 
Act, for assistance on such terms and conditions as he may specify, in 
the repair, rehabilitation, improvement, and maintenance of cemeteries 
in Italy serving as the burial place of members of the armed forces 
of Poland who died in combat m Italy during World War II. 

Sec. 649.^'^^ Limitation on Aggregate Authorization for Use in 
Fiscal Year 1966. — Notwithstanding any other provisions of this Act, 
the aggregate of the total amounts authorized to be appropriated for 
use during the fiscal year 1966 for furnishing assistance and for ad- 
ministrative expenses under this Act shall not exceed $3,360,000,000. 

Sec. 650.^'^ Use of United States Armed Forces. — The furnishing 
of economic, military, or other assistance under this Act shall not be 
construed as creating a new commitment or as affecting any existing 

66» 22 use § 2404. Sec. 304 of the FAAct of 1963 amended. Section 645. which formerly 
read as follows : "Unexpended balances of funds made available pursuant to this Act or 
the Mutual Security Act of 1954, as amended, are hereby authorized to be continued 
available for the general purposes for which appropriated, and may at any time be con- 
solidated, and. In addition, may be consolidated with appropriations made available for 
the same general purposes under the authority of this Act." 

o'^oSec. 303(c) of the FAAct of 1965 substituted "the Latin American Development Act, 
as amended" for "Public Law 86-735". 

871 22 use § 2405. 

672 22 use § 2406. 

673 22 use § 2407. Sec. 648 was added by Sec. 303, of the FAAct of 1964. 

674 por te-t. see pacre 23n. 

e^ 22 use S 2408. Sec. 649 was added bv Sec. 305(d) of the FAAct of 1965. 
«7« 22 use § 2409. Sec. 650 was added by Sec. 302(b) of the FAAct of 1967. 



156 

commitment to use Armed Forces of the United States for the defense 
of any foreign country. 

Sec. 651.*^^^ Sale of Supersonic Planes to Israel. — It is the sense 
of the Congress that the President should take such steps as may be 
necessary, as soon as practicable after the date of enactment of this 
section, to negotiate an agreement with the Government of Israel pro- 
viding for the sale by the United States of such number of supersonic 
planes as may be necessary to provide Israel with an adequate deterrent 
force capable of preventing future Arab aggression by offsetting 
sophisticated weapons received by the Arab States and to replace 
losses suffered by Israel in the 1967 conflict. 

Sec. 652."^ Limitation Upon Exercise of Special Authorities.—^ 
The President shall not exercise any special authority granted to him 
under section 506(a), 610(a), or 614(a) of this Act unless the Presi- 
dent, prior to the date he intends to exercise any such authority, 
notifies the Speaker of the House of Representatives and the Com- 
mittee on Foreign Relations of the Senate in writing of each such 
intended exercise, the section of this Act under which such authority 
is to be exercised, and the justification for, and the extent of, the exer- 
cise of such authority. 

Sec. 653.''^ Change in Allocation of Foreign Assistance. — 
(a) Not later than thirty days after the enactment of any law appro- 
priating funds to carry out any provision of this Act (other than sec- 
tions 451 or 637), the President shall notify the Congress of each 
foreign country and international organization to which the United 
States Government intends to provide any portion of the funds under 
such law and of the amount of funds under that law, by category of 
assistance, that the United States Government intends to provide to 
each.««o 

(b)^^^ Notwithstanding any other provision of law, no military 
grant assistance, security supporting assistance, assistance under chap- 



«77 22 use § 2410. Sec. 651 was added bv Sec. '303 of the FAAct of 1968. 
«7«22 I'SC § 2411. Sec. 304(a)(1) of the FAAct of 1971 amended Sec. 652, which was 
added by Sec. 8 of the Special Foreign Assistance Act of 1971. Sec. 652 formerly read as 
follows : 

"Sec. 652. Limitation Upon Additional Assistance to Cambodia. — The President 
shall not exercise any special authority granted to him under sections 506(a), and 
614(a) of this Act for the purpose of providing additional assistance to Cambodia, 
unless the President, at least thirty days prior to the date he Intends to exercise any 
such authority on behalf of Cambodia (or ten days prior to such date if the Presi'^ent 
certifies in writing that an emergency exists requiring immediate assistance to Cam- 
bodia), notifies the Soeaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate in writing of each such intended exercise, the section 
of this Act under which such authority is to be exercised, and the justification for. and 
the extent of. the exercise of such authority." 
•TO 22 use § 2413. Sec. 653 was added by Sec. 304(b) of the FAAct of 1971. 
•soSec. 21(1) of the FAAct of 1974 struclc the balance of subsection (a) at this point. 
The stricken part read as follows : "Notwithstanding any other provision of law the United 
States Government shall not provide to any foreign country or international organization 
any funds under that law which exceeds by 10 per cetum the amount of military grant 
assistance or security supporting assistance, as the case may be. which the President notified 
the Congress that the United States Government intended to provide that country or organi- 
zation under that law. unless the President (1) determines that it is in the security interests 
of the United States that such country or organization receive funds In excess of the 
amount Included In such notification for that country or organization, and (2) reports to 
Congress at lenst ten days prior to the date on w^lch such excess funds are to be provided 
to that country or organization, each such determination, including the name of the coun- 
try- or OT-fra nidation to rpceive fJinds in excess of s'lch ner cpntuni. tv>e amount o*' fun'^s In 
excess of that per centum which are to be provided, and the justification for providing 
the additional assistance." 

"1 fapc. 21(2) of the FAAct of 1974 redesignated former subsection (b) as subsection (c) 
and added new subsection (b). 



157 

ter 1 of part I of this Act, or assistance under part V of this Act, may 
be furnished to any country or international organization in any fiscal 
year, if such assistance exceeds by 10 percent or more the amount of 
such military grant assistance, security supporting assistance, assist- 
ance under chapter 1 of part I of this Act, or assistance under part V 
of this Act, as the case may be, set forth in the report required by sub- 
section (a) of this section, unless — 

(1) the President reports to the Congress, at least ten days prior 
to the date on which such excess funds are provided, the country 
or organization to be provided the excess f imds, the amount and 
category of the excess funds, and the justification for providing 
the excess fimds ; and 

(2) in the case of military grant assistance or security support- 
ing assistance, the President includes in the report under para- 
graph (1) his determination that it is in the security interest of the 
United States to provide the excess funds. 

This subsection shall not apply if the excess funds provided in any 
fiscal year to any country or international organization for any cate- 
gory of assistance are less than $1,000,000. 

((,^682 ^]^g provisions of this section shall not apply in the case of 
any law making continuing appropriations and may not be waived 
under the provisions of section 614(a) of this Act. 

Sec. 654.^^^ Presidential Findings and Determinations. — (a) In^? 
any case in which the President is required to make a report to the 
Congress, or to any committee or officer of either House of Congress, 
concerning any finding or determination under anj provision of this 
Act, the Foreign Military Sales Act, or the Foreign Assistance and 
Related Programs Appropriation Act for each fiscal year, that finding 
or determination shall be reduced to writing and signed by the 
President. 

(b) No action shall be taken pursuant to any such finding or deter- 
mination prior to the date on which that finding or determination has 
been reduced to writing and signed by the President. 

(c) Each such finding or determination shall be published in the 
Federal Register as soon as practicable after it has been reduced to 
writing and signed by the President. In any case in which the Pres- 
ident concludes that such publication would be harmful to the national 
security of the United States, only a statement that a determination 
or finding has been made by the President, including the name and 
section of the Act under which it was made, shall be published. 

(d) No committee or officer of either House of Congress shall be 
denied any requested information relating to any finding or deter- 
mination which the President is required to report to the Congress, 
or to any committee or officer of either House of Congress, under any 
provision of this Act, the Foreign Military Sales Act, or the Foreign 
Assistance and Related Programs Appropriation Act for each fiscal 
jear, even though such report has not yet been transmitted to the 
appropriate committee or officer of either House of Congress. 

«82 Sec. 21(2) of the FAAct of 1974 redesignated this former subsection (b) as subsec- 
tion (c). 

»83 22 use § 2414. Sec. 654 was added by Sec. 304(b) of the FAAct of 1971. 



158 

Sec. 655.^^^ Limitations Upon Assistance to or for Cambodia. — 

(a) Notwithstanding any other provision of law, no funds authorized 
to be appropriated by this or any other law may be obligated in any 
amount in excess of $377,000,000 ''^^ for the purpose of carrying out 
directly or indirectly any economic or military assistance, or any oper- 
ation, project, or program of any kind, or for providing any ^oods, 
supplies, materials, equipment, services, personnel, or advisers in, to, 
for, or on behalf of Cambodia during the fiscal year ending June 30, 
1975. Of that sum, there shall be available no more than $200,000,000 
for military assistance. In addition to such $377,000,000, defense arti- 
cles and services may be ordered under section 506 of this Act for Cam- 
bodia in an amount not to exceed $75,000,000 in fiscal year 1975.^®^ 

(b) In computing the $377,000,000 «" limitation on obligation 
authority under subsection (a) of this section in fiscal year 1975,*®^ 
(1) there shall Ix^ included in the computation the value of any goods, 
supplies, materials, or equipment provided to, for, or on behalf of 
Cambodia in such fiscal year by gift, donation, loan, lease, or otherwise, 
and (2) there shall not be included in the computation the value of any 
goods, supplies, materials or equipment attributable to the operations 
of the Armed Forces of the Republic of Vietnam in Cambodia. For the 
purpose of this subsection, "value" means the fair market value of any 
goods, supplies, materials, or equipment provided to, for, or on behalf 
of Cambodia but in no case less than 33% per centum of the amount the 
United States paid at the time such goods, supplies, materials, or 
equipment were acquired by the United States. 

^(,j689 A^o funds may bo obligated for any of the purposes described 
in subsection (a) of this section in, to, for, or on behalf of Cambodia 
in any fiscal year beginning after June 30, 1972, unless such funds have 
been specifically authorized by law enacted after the date of enactment 
of this section. In no case shall funds in any amount in excess of the 
amount specifically authorized by law for any fiscal year be obligated 
for any such purpose during such fiscal year. 

(d) The provisions of siibsections (a) and (c) of this section shall 
not apply with respect to the obligation of funds to carry out combat 
air operations over Cambodia. 

(e) After the date of enactment of this section, whenever any request 
is made to the Congress for the appropriation of funds for use in, 
for, or on behalf of Cambodia for any fiscal year, the President shall 
furnish a written report to the Congress explaining the purpose for 
which such funds are to be used in such fiscal year. 

•8* 22 use 2415. Sec. 655 was added by Sec. 804(b) of the FAAct of 1971. 

««=Sec. 39(a)(1) of the FAAct of 1974 substituted "377,000,000" In lieu of 
"$341,000,000". 

«« See. 39(a)(2) of the FAAct of 1974 substituted "1975. Of that sum, there shall he 
available no more than $200,000,000 for military assistance. In addition to such $377,000,- 
000. defense articles and services may be ordered under section 506 of this Act for Cam- 
bodia in an amount not to exceed $75,000,000 in fiscal year 1975" in lieu of "1972". 

«87Sec. 39(a)(3) of the FAAct of 1974 substituted "$377,000,000 in lieu of 
"$341,000,000." 

«»Sec. 39(a)(4) of the FAAct of 1974 substituted "1975" in lieu of "19T2". 

«* Sec. 12(c) of the Foreign Assistance Act of 1973 provides : "(c) Sec. 655(c) shall not 
apply to assistance authorized to be furnished under any provision of law for fiscal year 



159 

(f) The President shall submit to the Congress within thirty days 
after the end of each quarter of each fiscal year, beginning with the 
fiscal year which begins July 1, 1971, a written report showing the 
total amount of funds obligated in, for or on behalf of Cambodia dur- 
in<r the preceding quarter by the United States Government, and shall 
inchide in such report a general breakdown of the total amount obli- 
gated, describing the different purposes for which such funds were 
obligated and the total amount obligated for such purpose except that 
in the case of the first two quarters of the fiscal year beginning July 1, 
1971, a single report may be submitted for both such quarters and 
such report may be computed on the basis of the most accurate esti- 
mates the President is able to make taking into consideration all infor- 
mation available to him. 

(g) Enactment of this section shall not be construed as a commit- 
ment bv the TTnited States to Cambodia for its defense. 

Sec. e56.««o Limitations on United States Personnel and Person- 
nel Assisted by United States in Cambodia.— The total number of 
civilian officers and employees of executive agencies of the United 
States Government who are citizens of the United States and of mem- 
bers of the Armed Forces of the United States (excluding such mem- 
bers while actually engaged in air operations in or over Cambodia 
which originate outside Cambodia) present in Cambodia at any one 
time shall not exceed two hundred. The United States shall not, at 
any time, pay in whole or in part, directly or indirectly, the compensa- 
tion or allowances of more than eighty-five individuals in Cambodia 
who are citizens of countries other than Cambodia or the United States. 
For purposes of this section, "executive agency of the United States 
Government" means any agency, department^ board, wholly or partly 
owned corporation, instrumentality, commission, or establishment 
within the executive branch of the United States Government. This 
section shall not be construed to apply with respect to any individual 
in Cambodia who (A) is an employee or volunteer worker of a volun- 
tary private, nonprofit relief organization or is an employee or vol- 
unteer worker of the International Committee of the Red Cross, and 
(B) engages only in activities providing humanitarian assistance in 
Cambodia.®^^ 

Sec. 657.^^2 Annual Foreign Assistance and Military Exports ^^^ 
Report. — (a) In order that the Congress and the American people 
may be better and more currently informed regarding the volume and 
cost of assistance extended by the United States Government to foreign 
countries and international organizations, and in order that the 
Congress and the American people may be better informed regarding 
the sale of arms to foreign countries and international organizations by 

«•« 22 use 2417. Sec. 657 was added by Sec. 304(b) of the FAAct of 1971. 

6»i This sentence was added by Sec. 39(b) of the FAAct of 1974. 

™2 22 use 2417. Sec. 23 o' the F\Act of 1973 reenacted Sec. 657 to this point: amended 
paragraph (3) subsection (a), which formerly read as follows: "(3) the aggregate dollar 
value of all nrms. ai^imunitions and other imple'^ients of war. and the aggregate dollar 
value of each category of such arms, ammunitions, and Implements of war, exported 
under any export license, to all foreign countries and international organizations, and to 
each such country and organization, during that fiscal year; and"; added paragraph (4), 
and renumbered former paragraph (4) as paragraph (5). 

«»3 The words "and Military Exports" were added bv Sec. 216(1) of the International 
Security Assistance and Arms Export Control Act of 1976. 



160 

private industry of tlie United States, not later than March 31 of 
each year^^* the President shall transmit to the Congress an annual 
report, for the fiscal year ^^* endin<r prior to the fiscal year in which 
the report is transmitted, showing — 

(1)®®^ the aggregate dollar value of all foreign assistance (in- 
cluding military education and training) , foreign military sales, 
sales credits, and guaranties provided or made by the United 
States Government by any means to all foreign countries and 
international organizations, and the aggregate dollar value of 
such assistance, sales, sales credits, and guaranties, by category, 
provided or made by the United States Government to or for 
each such country or organization during that fiscal year ; 

(2) the total amounts of foreign currency paid by each foreign 
country or international organization to the United States Gov- 
ernment in such fiscal year, what each payment was made for, 
whether any portion of such payment was returned by the United 
States Government to the country or organization from which the 
payment was obtained or whether any such portion was trans- 
ferred by the United States Government to another foreign 
country or international organization, and, if so returned or 
transferred, the kind of assistance obtained by that country or 
organization with those foreign currencies and the dollar value 
of such kind of assistance ; 

(3)^^ the aggregate dollar value and quantity of defense arti- 
cles and defense .services, and of military education and training, 
exported to each foreign country and international organization, 
by category, specifying whether the export was made by grant 
under chapter 2 or chapter 5 of part II of this Act, by sale under 
chapter 2 of the Arms Export Control Act, by commercial sale 
licensed under chapter 3 of that Act. or by other authority; and 

(4)^2 697 g^(,]^ other matters relating to foreign assistance pro- 
vided by the United States Government as the President consid- 
ers appropriate, including explanations of the information re- 
quired under clauses (1) throuofh (3)^'^^ of this subsection, 
(b) All information contained in any report transmitted under this 
section shall be public information. However, in the case of any item of 
information to be included in any such report that the President, on an 
extraordinary basis, determines is clearly detrimental to the security 

6»*Sec. 5(2) of the Fiscal Year Adjustment Act (Public Law 94-273) substituted 
"March In lieu of "December". 

Sec. 304(c)(3) of the FAAct of 1971 provides: "The provisions of this subsection and 
section 657 of such Act. as added by subsection (b) of this Act, shall apply with respect to 
each fiscal year commencing on or after July 1. 1971." 

6»5 Sec. 216(2) of the International Security Assistance and Arms Export Control Act 
of 1976 amended paragraph (1) which formerly read as follows : 

"(1) the aggregate dollar value of all foreign assistance provided by the United States 
Government by any means to all foreign countries and international organizations, and the 
aggregate dollar value of such assistance by category provided by the United States Gov- 
ernment to each such country and organization, during that fiscal year ;" 

»» Sec. 216(3) of the International Secu-ity Assistnnre nnd Arms Export Control Act 
of 1976 amended paragraph (3) which formerly read as follows : 

"(3) the aggregate dollar value of all weapons systems, munitions.^aircraft. military 
boats, military vessels, and other implements of war. and the aggregate dollar value 
of each category of such Implements of war. exported under any export license, to all 
foreign countries and international organizations and to each such country and or- 
ganization, during that fiscal year ;" 
«»' Sec. 216 of the International Security Assistance and Arms Exnort Control Act of 
1976 repealed paragraph (4) and redesigned paragraph (5) as paragraph (4). 

w8 Sec. 216(5) of the International Security Assistance and Arms Export Control Act of 
1976 substituted "(3)" in lieu of "(4)". 



161 

of the United States, he shall explain in a supplemental report why 
publication of each specific item would be detrimental to the security 
of the United States. A supplemental report ^^^ shall be transmitted to 
the Congress at the same time that the report is transmitted. 

(c) If the Congress is not in session at the time a report or supple- 
mental report ^^^ is transmitted to the Congress, the Secretary of the 
Senate and the Clerk of the House of Representatives shall accept the 
report or supplemental report ^^^ on behalf of their respective Houses 
of Congress and present the report or supplemental report ^®^ to the 
two Houses immediately upon their convening. 

(d) For the purposes of this section — 

(1) '^foreign assistance" means any tangible or intangible item 
provided by the United States Government under this or any other 
law to a foreign country or international organization, including 
but not limited to, any training, service, or technical advice, any 
item of real, personal, or mixed property, any agricultural com- 
modity. United States dollars, and any currencies owned by the 
United States Government of any foreign country ; and 

(2) "provided by the United States Government" includes, but 
is not limited to, foreign assistance provided by means of gift, 
loan, sale, credit, or oruaranty.*^^ 

Sec. 658.^^^ Limitation on Use of Funds. — (a) Except as other- 
wise provided in this section, none of the funds appropriated to carry 
out the provisions of this Act or the Foreign Military Sales Act shall 
be obligated or expended until the Comptroller General of the United 
States certifies to the Congress that all funds previously appropriated 
and thereafter impounded during the fiscal year 1971 for programs 
and activities administered by or under the direction of the Depart- 
ment of Agriculture, the Department of Housing and Urban Devel- 
opment, and the Department of Health, Education, and Welfare have 
been released for obligation and expenditure. 

(b) The provisions of this section shall not apply — 

( 1 ) to funds being withheld in accordance with specific require- 
ments of law; and 

(2) to appropriations obligated or expended prior to April 30, 
1072. 

Sec. 659.'°2 Access to Certain Military Bases Abroad. — None of 
the funds authorized to be appropriated for foreign assistance (includ- 
ing foreign military sales, credit sales, and guaranties) under this Act 
may be used to provide any kind of assistance to any foreign country 
in which a military base is located if — 

(1) such base was constructed or is being maintained or oper- 
ated with funds furnished by the United States; and 

(2) personnel of the United States carry out military opera- 
tions from such base ; 

«»»Sec. 23 of the FAAct of 1973 substituted "sunplemental report" in lieu of "s'lpple- 
ment- to anv renort" in the last sentence of subsection (b^. and substituted "supplemental 
report" in lieu of "supplement" each time it appeared in subsection (c). 

"JO Sec. 23 of the FAAct of 1973 deleted parajrrar^h (3) o^ subsection (d). which read: 
"(3) 'value* means value at the time of transfer except that in no case shall any commodity 
or article of equipment or material be considered to have a value less than one-third of the 
amount the United States Government paid at the time the commodity or article was 
acquired by the United States Government." 

"«i 22 r.S.C. 2418. Sec. 658 was added bv Sec. 304(b) of the FAAct of 1971. 

7»2 22 use 2419. Sec. 659 was added by Sec. 29(a) of the FAAct of 1974. See Determina- 
tion made Jan. 28, 1974, 39 F.R. QlSl. 



162 

unless and until the President has determined that the government of 
such country has, consistent with security authorized access, on a reg- 
ular basis, to bona fide news media correspondents of the United 
States to such military base. 

Sec. 660.^°^ Prohibiting Police Training.— (a) On and after 
July 1, 1975, none of the funds made available to carry out this Act, 
and none of the local currencies generated under this Act, shall be used 
to provide training or advice, or provide any financial support, for 
police, prisons, or other law enforcement forces for any foreign gov- 
ernment or any program of internal intelligence or surveillance on 
behalf of any foreign government within the United States or abroad. 

(b) Subsection (a) of this section shall not apply — 

(1) with respect to assistance rendered unaer section 515(c) of 
the Omnibus Crime Control and Snfe S^rrots Act of 1968 J°* with 
respect to any authority of the Drug Enforcement Administra- 
tion or the Federal Bureau of Investigation which relates to 
crimes of the nature which are unlawful under the laws of the 
United States, or with respect to assistance authorized under 
section 482 of this Act ; or 

(2) to any cont ract entered into prior to the date of enactment 
of this section with any person, organization, or agency of the 
United States Government to provide personnel to conduct, or 
assist in conducting, any such program. 

Notwithstanding clause (2), subsection (a) shall apply to any re- 
newal or extension of any contract referred to in such paragraph 
entered into on or after such date of enactment. 

Sec. 661.^°^ Reimbursable Development Programs. — The Presi- 
dent is authorized to use $2,000,000 of the funds made available for the 
purposes of this Act in the fiscal year 1977 and $2,000,000 of the funds 
made available for the purposes of this Act in the fiscal year 1978,^**^ 
to work with friendly countries, especially those in which United States 
development programs have been concluded or those not receiving as- 
sistance under part I of this Act, in (1) facilitating open and fair ac- 
cess to natural resources of interest to the United States and (2) stim- 
ulation of reimbursable aid programs consistent with part T of this 
Act. Any funds used for purposes of this section may be used notwith- 
standing any other provision of this Act. 

Sec. 662.^**^ Limitation on Intelligence Activities. — (a) No funds 
appropriated under the authority of this or any other Act may be ex- 
pended by or on behalf of the Central Intelligence Agency for opera- 
tions in foreign countries, other than activities intended solely for 
obtaininc: necessary intelligence, unless and until the President finds 
that each such operation is important to the national security of the 
United States and reports, in a timely fashion, a description and scope 
of such operation to the appropriate committees of the C/ongress, 
including the Committee on Foreign Relations of the United States 
Senate and the Committee on Foreign Affairs of the United States 
House of Representatives. 

'«» 22 TTSC 2420. Sec. 660 was added by Sec. 30(a) of the FAAct of 1974. 

"">* Public T.nw 90-351 : 82 Stat. 197. apnroved June 19. 1968. 

"» 22 use 2421. Sec. 661 was added bv Sec. 31 of the FAAct of 1974. 

'"•Sec. 128 of the International Development and Food Assistance Act of 1977 (91 Fltat. 
543> struck out references to n-it'^orlz^tlons for FY 1975 and FY 1976 (FY 1975 — 
$1,000,000 : FY 1976 — $2,000,000) and added the referem?e to the FY 1978 authorization. 

•«" 22 use 2422. Sec. 062 was added by Sec. 32 of the FAAct of 1974. 



163 

(b) The provisions of subsection (a) of this section shall not apply 
during military operations initiated by the United States under a 
declaration of war approved by the Congress or an exercise of powers 

Sec. 663.^^* Exchanges of Certain Materials. — (a) Notwithstand- 
ing any other provision of law, whenever the President determines it 
is in the United States national interest, he shall furnish assistance 
under this Act or shall furnish defense articles or services under the 
Foreign Military Sales Act '"^^ pursuant to an agreement with the 
recipient of such assistance, articles, or services which provides that 
such recipient may only obtain such assistance, articles, or services 
in exchange for any necessary or strategic raw material controlled by 
such recipient. For the purposes of this section, the term "necessary 
or strategic raw material" includes petroleum, other fossil fuels, 
metals, minerals, or any other natural substance which the President 
determines is in short supply in the United States. 

(b) The President shall allocate any necessary or strategic raw ma- 
terial transferred to the United States under this section to any appro- 
priate agency of the United States Government for stockpiling, sale, 
transfer, disposal^ or any other purpose authorized by law. 

(c) Funds received from any disposal of materials under subsection 
(b) shall be deposited as miscellaneous receipts in the United States 
Treasury. 

Sec. 664.' I'' Waiver of Prohibition Against Assistance to Coun- 
tries Engaging in Certain Trade. — [Repealed 1977] 

Sec. 665.^^^ Transition Provisions for Interim Quarter. — There 
are authorized to be appropriated for the period July 1, 1976 through 
September 30, 1976, such amounts as may be necessary to conduct pro- 
grams and activities for which funding was authorized for fiscal year 
1976 by the International Development and Food Assistance Act of 
1975, in accordance with the provisions applicable to such programs 
and activities for such fiscal year, except that the total amount appro- 
priated for such period shall not exceed one-fourth of the total amount 
authorized to be appropriated for the fiscal year 1976 for such pro- 
grams and activities. 

Sec. 666.^12 j)ig^.j.j,ni,^2^^i^j,^ Against United States Personnel.— 
(a) The President shall not take into account, in assigning officers and 
employees of the United States to carry out any economic development 
assistance programs funded under this Act in any foreign country, the 
race, religion, national origin, or sex of any such officer or employee. 
Such assignments shall be made solely on the basis of ability and rel- 
evant experience. 

(b) Effective six months after the date of enactment of the Inter- 
national Development and Food Assistance Act of 1975, or on such 

708 22 use 2423. Sec. 663 was added by Sec. 32 of the FAAct of 1974. 

709 For text, see page 273. 

■"OUSC 2424. Sec. 6G4, as added by Sec. 33 of the FAAct of 1974, was repealed by 
Sec 123(c) of the International Development and Food Assistance Act of 1977 (91 Stat. 
541). If formerly read as follows : 

"Sec. 664. Waiver of Prohibition Against Assistance to Countries Engaging in 
Certain Trade. — Any provision of this Act which prohibits assistance to a country 
because that country is engaging In trade with a designated country, or because that 
country permits ships or aircraft under Its registry to transport any equipment, materials, 
or commodities to or from such designated country, may be waived by the President if he 
determines that such waiver Is in the national interest and reports such determination to 
the Con ress. 

^^^^ V.^9, ^^^•'*- ^^^- ^^^ ^^^ &a(\e6 by Sec. 317 of Public Law 94-161 (89 Stat. 849). 

712 22 US€ 2426. Sec. 666 was added by Sec. 318 of Public Law 94-161 (89 Stat. 849). 



tB4 

earlier date as the President may determine, none of the funds made 
available under this Act may be used to provide economic develop- 
ment assistance to any country which objects to the presence of any 
officer or employee of the United States who is present in such coim- 
try for the purpose of carrying out any program of economic develop- 
ment assistance authorized by the provisions of this Act on the basis 
of the race, religion, national orif'-in, or sex of such officer or employee. 

(c) The Secretary of State shall promulgate such rules and regula- 
tions as he may deem necessary to carry out the provisions of this 
section. 

Sec. 667J^^ Operating Expenses. — (a) There are authorized to be 
appropriated to the President, in addition to funds otherwise available 
for such purposes, for tlie fiscal year 1978 — 

(1) $220,200,000 for necessary operating expenses of the agency 
primarily responsible for administering part I of this Act; and 

(2) such amounts as may be necessary for increases in salary, 
pay, retirement, and other employee benefits authorized by law, 
and for other nondiscretionary costs of such agency. 

(b) Amounts appropriated under this section are authorized to 
remain available until expended."* 

Sec. 668.'^^ Report on Korea. — Within ninety days after the enact- 
ment of this section, and at least once during each of the next five 
years, the President shall transmit to the Speaker of the House of 
Representatives and to the Committees on Foreign Relations and 
Armed Services of the Senate a report which (1) reviews the progress 
made under the announced program of the Republic of Korea to mod- 
ernize its armed forces so as to achieve military self-sufficiency by 1980, 
(2) reports on the role of the United States in mutual security efforts 
in the Republic of Korea, and (3) reports on the prospects for or 
implementation of phased reduction of United States Armed Forces 
assigned to duty in the Republic of Korea, in coordination with the 
timetable of the Republic of Korea for military self-sufficiency. 

Sec. 669.'*^ Nuclear Enrichment Transfers. — (a) Except as pro- 
vided in subsection (b), no funds authorized to be appropriated by 
this Act or the Arms Export Control Act may be used for the purpose 



713 22 use 2427. Sec. 667. as added by Sec. 319 of Public Law 94-161 (89 Stat. 849), 
was amended and restated by Sec. 129(a) of the International Development and Food 
Assistance Act of 1977 (91 Stat. 543). It formerly read as follows : 

"Sec. 667. Operating Expenses. — Nothlnjj in this Act is Intended to preclude the Com- 
mittees on Apnronriations. in annroprintion lecrlslation. from settine: a celline on o'-eratinj; 
expenses of the agency primarily responsible for administering part I and limiting the 
availability of other sums therefor." 

"* FA Appropriations Act. 1978 : 

"Operating expenses of the Agency for International Development : For necess«irv ex- 
penses to carry out the provisions of section 667 of the T^'orei'^n Assistance Act of 1^61. as 
amended, 3^213,000,000 : Provided, That not more than $94,100,000 of this amount shall be 
for AID Washington Operating Expenses : Provided further. That not to exceed $700,000 of 
funds provided to the Agency for International Development by this Act shall be available 
for hiring experts and consultants pursuant to 5 U.S.C. 3109 and of this amount not to 
exceed $100,000 shall be available for hiring experts and consultants who are retired 
employees of the Acency for International Develooment : Provided further. That none of 
the funds made available by this Act shall he available for leasing, purchasing, renovating, 
or furnishing of housing or office snace in Cairo. Egypt, except through the Foreign Build- 
ing Operations of the Department of State : Provided further. That not to exceed $12.0.000 
of the funds made available by this Act shall be available for the Administrator's Develop- 
ment Seminar of the Agency for International Development." 

715 22 T7SC 2428. Sec. 668 was «dded by Sec. 411 of the International Security Assistance 
and Arms Export Control Act of 1976. 

""» 22 use 2429. Sec. 669, as added by S«c. 305 of Public Iaw 94-3*29, was amended 
and restated by Sec. 12 of the International Security Assistance Act of 1977 (91 Stat. 620). 



165 

of providing economic assistance, providing military or security sup- 
porting assistance or grant military education and training, or extend- 
ing military credits or making guarantees, to any country which, on or 
after the date of enactment of the International Security Assistance 
Act of 1977, delivers nuclear enrichment equipment, materials, or tech- 
nology to any other country, or receives such equipment, materials, or 
technology from any other country, unless before such delivery — 

(1) the supplying country and receiving country have reached 
agreement to place all such equipment, materials, or technology, 
upon delivery, under multilateral auspices and management when 
available; and 

(2) the recipient country has entered into an agreement with 
the International Atomic Energy Agency to place all such equip- 
ment, materials, technology, and all huclear fuel and facilities in 
such country under the safeguards system of such Agency. 

(b)(1) Notwithstanding subsection (a) of this section, the Presi- 
dent may furnish assistance which would otherwise be prohibited 
imder such subsection if he determines and certifies in writing to the 
Speaker of the House of Kepresentatives and the Committee on For- 
eign Relations of the Senate that — 

(A) the termination of such assistance would have a serious 
adverse effect on vital United States interests ; and 

(B) he has received reliable assurances that the country in 
question will not acquire or develop nuclear weapons or assist 
other nations in doing so. 

Such certification shall set forth the reasons supporting such deter- 
mination in each particular case. 

(2) Any joint resolution which would terminate or restrict assist- 
ance described in subsection (a) with respect to a country to which the 
prohibition in such subsection applies shall, if introduced within thirty 
days after the transmittal of a certification under paragraph (1) of 
this subsection with respect to such country, be considered in the Sen- 
ate in accordance with the provisions of section 601(b) of the Inter- 
national Security Assistance and Arms Export Control Act of 1976. 
Sec. 670.^^^ Nuclear Reprocessing Transfers and Nuclear Deto- 
nations. — (a) Except as provided in subsection (b), no funds author- 
ized to be appropriated by this Act or the Arms Export Control Act 
may be used for the purpose of providing economic assistance, provid- 
ing military or security supportinff assistance or grant military educa- 
tion and training or extending military credits or making guarantees, 
to any country which on or after the date of enactment of the Interna- 
tional Security Assistance Act of 1977 — 

(1) delivers nuclear reprocessing equipment, materials, or tech- 
nology to any other country or receives such equipment, materials, 
or technology from any other country (except for the transfer of 
reprocessing technology associated with the investigation, under 
international evaluation programs in which the United States 
participates, of technologies which are alternatives to pure plu- 
tonium reprocessing) ; or 

*"' 22^TTSC 2429a. Sec. 670 was added by Sec. 12 of the International Security Assistance 
Act of 1977 (91 Stat. 620). 



166 

(2) is not a nuclear-weapon state as defined in article IX (3) of 
the Treaty on the Non-Proliferation of Nuclear Weapons "® and 
which detonates a nuclear explosive device. 

(b)(1) Notwithstanding subsection (a) of this section, the Presi- 
dent may furnish assistance which would otherwise be prohibited 
under such subsection if he determines and certifies in writing to the 
Speaker of the House of Representatives and the Committee on For- 
eign Relations of the Senate that the termination of such assistance 
would be seriously prejudicial to the achievement of United States 
nonproliferation objectives or otherwise jeopardize the common defense 
and security. The President shall transmit with such certification a 
statement setting forth the specific reasons therefor. 

(2) Any joint resolution which would terminate or restrict assist- 
ance described in subsection (a) with respect to a country to which the 
prohibition in such subsection applies shall, if introduced within thirty 
days after the transmittal of a certification under paragraph (1) of this 
subsection with respect to such country, be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

Sec. 671."® Notification of Program Changes. — None of the funds 
appropriated to carry out the purposes of this Act (except for pro- 
grams under title III or title IV of chapter 2 of part I, chapter 5 of 
part I, and programs of disaster relief and rehabilitation) may be obli- 
gated for any activities, programs, projects, types of materiel assist- 
ance, countries, or other operations not justified, or in excess of the 
amount justified, to the Congress for obligation under this Act for any 
fiscal year unless the Committee on Foreign Relations of the Senate, 
the Committee on International Relations of the House of Represent- 
atives, and the Committee on Appropriations of each House of the 
Congress are notified fifteen days in advance of such obligation. 

PART IV "0 * * * [Repealed— 1962] 

PART V "^ * * * [Repealed— 1976] 

PART VI 

Chapter 1— Assistance to the Middle East "^ 

Sec. 901.^" Statement of Policy. — The Congress recognizes that a 
peaceful and lasting resolution of the divisive issues that have con- 
tributed to tension and conflict between nations in the Middle East 
is essential to the security of the United States and the cause of world 

"8 For text, see oage 38. Vol. III. 

■"8 22 use 2429b. Sec. 671 was added by Sec. 130 of the International Development and 
Food Assistance Act of 1977 (91 Stat. 543). 

"•> Part IV, wiaich related to amendments to other laws, was repealed by Sec. 401 of the 
FAAct of 1962 and provided that the "repeal shall not be deemed to affect amendments 
contained in such part". 

"^21 Part V, which related to Indochina Postwar Reconstruction, was repealed by Sec. 413 
of the International Security Assistance and Arms Export Control Act of 1976. For com- 
plete text of regulations governing determinations, authorizations, etc., and remaining 
funds under part V. see page 311. 

'23 Sec. 42 of the FAAct of 1974 added Part VI. 

'« 22 use 2441. Sec. 901 was added by Sec. 42 of the FAAct of 1974. 



167 

peace. The Congress declares and finds that the United States can 
and should play a constructive role in securing a just and durable 
peace in the Middle East by facilitating increased understanding be- 
tween the Arab nations and Israel, and by assisting the nations in 
the area in their efforts to achieve economic progress and political 
stability, which are the essential foundations for a just and durable 
peace. It is the sense of Congress that United States assistance pro- 
grams in the Middle East should be designated to promote mutual 
respect and security among the nations in the area and to foster a 
climate conducive to increased economic development, thereby con- 
tributing to a community of free, secure, and prospering nations in 
the Middle East. 

It is further the sense of Congress that none of the funds authorized 
by this Act should be provided to any nation which denies its citizens 
the right or opportunity to emigrate. 

It is the sense of Congress that the United States will continue 
to determine Middle East Policy as circumstances may require and 
that the authority contained in the joint resolution entitled "Joint 
resolution to implement the United States proposal for the early- 
warning system in Sinai", approved October 13, 1975 (Public Law 
94-110), ^2* and the authorizations contained in the amendments made 
by the International Security Assistance and Arms Export Control 
Act of 1976 ^^^ do not, and shall not in any way be construed to, consti- 
tute congressional approval, acceptance, or endorsement (1) of any 
oral or written commitment, understanding, assurance, promise, or 
agreement, whether expressed or implied, or any other expression, oral 
or written (other than the "United States Proposal for the Early 
Warning System in Sinai"), made by any official of the United States 
which Israel, Egypt, or any other nation or organization might con- 
strue or interpret as a basis on which it could rely or act, or (2) of any 
characterization of any such commitment, understanding, assurance, 
promise, or agreement, or other expression, as constituting a "codifica- 
tion" of existing, congressionally approved United States policy.'^^^ 

Sec. 902. ^27 Allocations. — (a) Of the fimds appropriated to carry 
out chapter 2 of part II of this Act during the fiscal year 1975, not 
to exceed $100,000,000 may be made available for military assistance in 
the Middle East. 

(b) Of the funds appropriated to carry out chapter 4 of part II of 
this Act during the fiscal year 1975, not to exceed $652,000,000 may be 
made available for security supporting assistance in the Middle East. 

(c) Of the aggregate ceiling on credits and guaranties established by 
section 31(b) of the Foreign Military Sales Act during the fiscal year 
1975, not to exceed $330,000,000 shall be available for countries in the 
Middle East. 

Sec. 903.^28 Special Requirements Fund. — (a) There are author- 
ized to be appropriated to the President for the fiscal year 1978 not 
to exceed $25,000,000, of which not less than $12,200,000 shall be avail- 
's* For text, see Vol. II. page 378. 

725 Pqj. |-pyt gpg pajjg 3Qg 

"«The last paragraph of Sec. 901 was added by Sec. 401 of the International Security 
ABSistance and Arms Export Control Act of 1976. 

■"" 22 use 2442. Sec. 002 was added by Sec. 42 of the FAAct of 1974. 
^28 22 use 2443. Sec. 903 was added by Sec. 42 of the FAAct of 1974. 



168 

able only for Sinai support mission,'^® to furnish assistance under 
part I of this Act to meet special requirements arising from time to 
time in carrying out the purposes of this part, in addition to funds 
otherwise available for such purposes. The funds authorized to be 
appropriated by this section shall be available for use by the Presi- 
dent for assistance authorized by such part in accordance with the 
provisions applicable to the furnishing of such assistance. Such funds 
are authorized to remain available until ex|)ended. 

(b) The President may only obligate or expend, for each foreigri 
country or international organizations, funds authorized under this 
section — 

(1) after he reports to the Speaker of the House of Representa- 
tives and the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate concerning (A) the name of such 
foreign country or international organizations, (B) the amount 
of such funds to be made available to such country or organiza- 
tion, (C) the purpose for which such funds are to be made avail- 
able to such country or organization, and (D) ^^" the reasons why 
the Pi*esident has determined that it is in the national interest to 
use funds appropriated under this section for such purpose 
rather than (i) using funds available for such purpose under part 
I, or (ii) if no funds are available for such purpose under part I, 
awaiting the enactment of legislation making funds specifically 
available for such purpose ; and 

(2) unless the Congress, within thirty calendar days after re- 
ceiving any report under paragraph (1), adopts a concurrent reso- 
lution stating m substance that it does not favor the provisions of 
the re]X)rt required by '^* paragraph (1). 

(c)"^ Funds appropriated under subsection (a) shall be available 
to assist the Governments of Egypt and Israel in carrying out activities 
under the Agreement of October 10, 1975, and to pay the costs of 
implementing the United States proposal for the early warning system 
in Sinai. Such funds may be obligated without regard to the provisions 
of subsection (b) of this section to the extent that the proposed obliga- 

^Sec. 13(1) of the International Security Assistance Act of 1977 (91 Stat. 621^ stnck 
out the references to the authorizations for FY 1976 and FY 1977 (FY 197ft— $50,000,000 ? 
FY 1977 — $35,000,000) and added the reference to the FY 1978 authorization. 

FA Appropriation Act. 1978 : 

"Middle East sneclal requirements fund : For necessary expenses to carry out the provi- 
sions of section 90.3 of the Foreign Assistance Act of 1961. as amended, $8,000,000 : Pro- 
vided, That none of the funds appropriated under this heading may be used to provide a 
United states contribution to the United Nations Relief and Works Agency. Provided fur- 
ther. That none of the funds aoproprlated under this heading mav be used to carry out 
those provisions of section 903 of the Foreign Assistance Act of 1961 which pertain to the 
Sinai s'lpport mission." 

■^«' Phrase (D) was added by Sec. 13(2) (A) of the International Security Assistance Act 
of 1977 (91 Stat. 621). 

731 Sec. 12(2) (B) of t^e International Security Assistance Act of 1977 (91 Stat. 621) 
substituted the words "required by" In lieu of the words "provided by clauses (A). (B), 
and (C) of" 

^32 Sec. 502 r2^ of the International Security Assistance and Arms Rrport Control Act of 
1976 amended Subsection (c) and added the new Subsections (d) and (e). Subsection (c) 
formerly read as follows : 

"(c) Of the amount authorized under subsection (a), not less than $6,000,000 shall con- 
stitute a contribution by the United States toward the settlement of the deficit of the United 
Nations Relief and Works Agency for Palestine Refugees in the Middle East, if the Presi- 
dent determines that a reasonable number of other countries will contribute a fair share 
toward the settlement of such deficit within a reasonable period of time after the date of 
enactment of the Foreign Assistance Act of 1974. In determining such fair share, the Presi- 
dent shall take into consideration the economic position of each such country. Such $6,- 
000.000 shall be in addition to any other contribution to such Agency by the United 
States pursuant to any other provision of law." 



169 

tion has been justified to the Congress prior to the enactment of this 
subsection. 

(d) "^2 Of the amount authorized to be appropriated in subsection 
(a) for the fiscal years 1976 and 1977, not less than $12,000,000 for each 
such year shall constitute a contribution by the United States toward 
the settlement of the deficit of the United Nations Relief and Works 
Agency for Palestine Refugees in the Middle East, if the President 
determines that a reasonable number of other countries will contribute 
a fair share toward the settlement of such deficit within a reasonable 
period of time after the date of enactment of the International Security 
Assistance and Arms Export Control Act of 1976. In determining such 
fair share, the President shall take into consideration the economic 
position of each such country. Such $24,000,000 shall be in addition 
to any other contribution to such Agency by the United States pursuant 
to any other provision of law. 

(e) "^2 Funds made available under this section may be obligated 
without regard to the provisions of subsection (b) of this section for 
programs contained in the presentation materials submitted to Con- 
gress for the fiscal year 1978."' 

"^ The reference to FY 1978 was substituted in lieu of a reference to FY 1977 by 
Sec. 13(3) of the International Security Assistance Act of 1977 (91 Stat. 621). 



20-818 O - 78 - 12 



b. International Development and Food Assistance Act of 1977 

Partial text of Public Law 95-88 [H.R. 6714], 91 Stat. 533, approved 

Augrust 3, 1977 



Note. — Except for the provisions noted below, the Interna- 
tional Development and Food Assistance Act of 1977 consists of 
amendments to the FAAct of 1961 and the A<i;ricultural Trade 
Development and Assistance Act of 1954 (P.L. 480). For texts, 
see pa^es 9 and 339. 



AN ACT To amend the Foreign Assistance Act of 1961 to authorize development 
assistance programs for fiscal year 1978. to amend the Agricultural Trade 
Development and Assistance Act of 1954 to make certain changes in the author- 
ities of that Act, and for other purposes. 

Be it enacted hy the Senate and Hmme of Re/presentatives of the 
United States of America in Congress assembted^ 

SHORT TITLE 

Section 1. This Act may be cited as the "International Develop- 
ment and Food Assistance Act of 1977". 

TITLE I— INTERNATIONAL DEVELOPMENT ASSISTANCE 



INSPECTOR GENERAL, FOREIGN ASSISTANCE 

Sec. 124. (a) (1) * * * 

(2) The President (A) may assign to the Inspector General, For- 
eign Service, any of the duties and responsibilities vested by surh 
section 624(d) in the Inspector General, Foreign Assistance, and (B) 
may authorize the Inspector General, Foreign Service, to exercipe 
such of the authorities granted by such section 624(d) to the Inspector 
General, Foreign Assistance, as the President determines are neces- 
sary to carry out any duties or responsibilities so assigned. 

(b) Section 5315 of title 5, United States Code, is amended by 
repealin<r paragraphs (52) and (53). 

(c) The amendments made by this section shall take effect on 
July 1, 1978. 

FUTURE UNITED STATES DEVELOPMENT ASSISTANCE 

Sec. 131. It is the sense of the Congress that the United States should 
increase substantially its assistance for self-help development among 

(170) 



171 

the world's poorest people. Such assistance should be provided in 
accordance with the general policies and principles of chapter 1 of 
part I of the Foreign Assistance Act of 1961, with particular emphasis 
on encouraging and supporting more equitable patterns of economic 
growth, especially in the poorebl countries, and should be coordinated 
with similar expanded efforts by international organizations, donor 
nations, and the recipient countries themselves. 

LIMITATION ON USE OF FUNDS; MISSING IN ACTION IN VIETNAM 

Sec. 132. (a) None of the funds authorized to be appropriated by 
this Act may be used for assistance to or reparations for the Socialist 
Republic of Vietnam, Cambodia, Laos, or Cuba. 

(b) The President shall continue to take all possible steps to obtain 
a final accounting of all Americans missing in action in Vietnam. 

PLAN FOR INCREASED MINORITY BUSINESS PARTICIPATION IN 
FOREIGN ASSISTANCE ACTIVITIES 

Sec. 133. (a) The Administrator of the agency primarily responsible 
for administering part I of the Foreign Assistance Act of 1961 shall 
prepare and transmit to the Congress, not later than 30 days after 
the date of enactment of this Act, a detailed plan for the establishment 
of a section on minority business within such agency. 

(b) Such plan shall include, but shall not be limited to — 

(1) a description of where the section on minority business will 
be located in such agency's organizational structure and what 
relevant lines of authority will be established ; 

(2) a listing of the specific responsibilities that will be assigned 
to the section on minority business to enable it to increase, in a 
rational and effective manner, participation of minority busi- 
ness enterprises in activities funded by such agency ; 

(3) a design for a time-phase system for bringing about 
expanded minority business enterprise participation, including 
specific recommendations for percentage allocations of contracts 
by such agency to minority business enterprises ; 

(4) a proposed reporting system that will permit objective 
measuring of the degree of participation of minority business 
enterprises in comparison to the total activities funded by such 
agency; 

(5) a detailed projection of the administrative budgetary 
impact of the establishment of the section on minority business; 
and 

(6) a detailed set of objective criteria upon which determina- 
tions will be made as to the qualifications of minority husinevSS 
enterprises to receive contracts funded by such agency. 



172 

TITLE II— FOOD FOR PEACE 
« • • « « # • 

STUDY OF PAYMENTS OF OCEAN FREIGHT DIFFERENTIALS 

Sec. 214. The President shall conduct a comprehensive study of 
payment of ocean freifjht differentials between United States-fla^ rates 
and foreiofn-flaof rates when United States-flao: vessel? are required to be 
used, in accordance with section 901(b) of the Merchant Marine Act, 
1930, for the shipment of a*;ricultural commodities under the Agricul- 
tural Trade Development and Assistance Act of 1954 and shall recom- 
mend possible chanores in the method of reimbursement which is now 
borne by the Commodity Credit Corporation. Such study shall be 
completed within 180 days after the date of enactment of this section 
and submitted to the followintr committees of the Congress : the Senate 
Committee on Agriculture, Nutrition, and Forestry; the Senate 
Committee on Commerce, Science, and Transportation; the House 
Committee on Agriculture ; the House Committee on Merchant Marine 
and Fisheries; and the House Committee on International Relations. 

EFFECTIVE DATE 

Sec. 215. The provisions of this title shall become effective October 1, 
1977. 



c. International Development and Food Assistance Act of 1975 

Partial Text of Public Law 94-161 [H.R. 9005], 89 Stat. 849, 
approTed December 20, 1975 



Note. — Except for the provisions noted below, the Interna- 
tional Development and Food Assistance Act of 1975 consists of 
ainendments to tlio FAAct of 1061 nnd the AirricnUiiral Trade 
Development and Assistance Act of 1954 (P.L. 480). For texts 
see pages 9 and 339. 



AN ACT To authorize assistance for disaster relief and rehabilitation, to provide 
for overseas distribution and production of agricultural commodities, to amend 
the Foreign Assistance Act of 1961, and other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "International Development and Food Assistance Act 
of 1975". 



REPOBT REGARDING IMPLEMENTATION OF RECOMMENDATIONS OF WORLD 

FOOD CONFERENCE 

Sec. 213. The Congress calls upon the President to strengthen the 
efforts of the United States to carry out the recommendations of the 
World Food Conference. The President shall submit a detailed report 
to the Congress not later than November 1, 1976, with respect to the 
steps he has taken to carry out the recommendations of the World 
Food Conference, including steps to fulfill the commitment of the 
United States and to encourage other nations to increase their partici- 
pation in efforts to improve the food security of the poorest portion of 
the world's population. 



INTERNATIONAL ORGANIZATIONS AND PROGRAMS 

Sec. 313. (a) * * * 

(b) Section 54 of the Foreign Assistance Act of 1974 is amended 
by striking out "part III" and inserting in lieu thereof "part I". 



LIMITATION ON ASSISTANCE TO CHILE 

Sec. 320. Notwithstanding any other provision of law, the total 
amount of economic assistance (including but not limited to housing 

(173) 



174 

guaranties and sales under title I of the Agricultural Trade Develop- 
ment and Assistance Act of 1954) that may be made available to Chile 
may not exceed $90,000,000 during the fiscal year 1976. 

SETTLEMENT OF DEBT OWED THE UNITED STATES 

Sec. 321. No debt owed to the United States by any foreign country 
with respect to the payment of any loan made under any program 
funded under this Act may be settled in an amount less than the full 
amount of such debt unless the Congress by concurrent resolution 
approves of such settlement. 

TARTICIPATION BY OTHER COUNTRIES IN PROVIDING ASSISTANCE TO 
ISRAEL OR EGYPT 

Sec. 322. It is the sense of the Senate that the President should 
attempt to negotiate an equitable share of participation by the coun- 
tries of Western Europe, Japan, and the United Nations in providing 
assistance to Israel or Egypt. 



d. Foreign Assistance Act of 1974 

Partial Text of Public Law 93-559 [S. 3394], 88 Stat. 1795, approved December 30, 
1974, as amended by Public Law 94-329 [International Security Assistance and 
Arms Export Control Act of 1976; H.R, 13680], 90 Stat. 729 at 761, approved 
June 30, 1976. 



Note. — Except for the provisions noted below, the FAAct of 
1974 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, and the 1971 Act to amend the FMS Act. 



AN ACT To amend the Foreign Assistance Act of 1961, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may be 
cited as the "Foreign Assistance Act of 1974". 



CEILING ON FEBTTIJZERS TO SOUTH VIETNAM 

Sec. 3.^ (a) None of the moneys made available under the Foreign 
Assistance Act of 1961 or the Foreign Assistance Act of 1974 ma^ be 
used, beginning on the date of enactment of this section, during fiscal 
year 1975 to procure agricultural fertilizers for, or to provide such 
fertilizers to, South Vietnam. 

(b) During each fiscal year after fiscal year 1975, of the total amount 
obligated or expended for such fiscal year under the Foreign Assist- 
ance Act of 1961 to procure agricultural feitilizers for, or to provide 
such fertilizers to, foreign countries, not more than one-third of such 
amount may be obligated or expended to procure such fertilizers for, 
or provide such fertilizers to, South Vietnam. 



REVIEW OF MILITARY ASSISTANCE PROGRAM 

Sec. 17.* (a) It is the sense of Congress that the policies and pur- 
poses of the military assistance program conducted under chapter 2 
of part II of the Foreign Assistance Act of 1961 should be reexamined 
in light of changes in world conditions and the economic position of 
the United States in relation to countries receiving such assistance; 
and that the program, except for military education and training 
activities, should be reduced and terminated as rapidly as feasible con- 
sistent with the security and foreign policy requirements of the United 
States. 



« 22 use 2176a, 
•22 DSC 2311 note 



C175) 



176 

(b) In order to give effect to the sense of Congress expressed ir 
subsection (a), the President is directed to submit to the first session 
of the 94th Congress a detailed plan for the reduction and eventual 
elimination of the present military assistance progi*am. 

• ♦♦♦♦♦♦ 

LIMITATION ITPON ASSISTANCE TO OR FOR CHILE 

Sec. 25.^ Notwithstanding any other provision of law, the total 
amount of assistance that may be made available for Chile under the 
Foreign Assistance Act of 1961, and the Foreign Military Sales Act 
during fiscal year 1975, may not exceed $25,000,000, none of which 
may be made available for the purpose of providing military assist- 
ance (including security supporting assistance, sales, credit sales, or 
guaranties or the furnishing by any means of excess defense articles 
or items from stockpiles of the Department of Defense) . 

LIMITATION ON MILITARY ASSISTANCE AND EXCESS DEFENSE ARTICLES TO 

KOREA 

Sec. 26.* (a) The ngcrogate amount of — 

(1) funds obligated or reserved for military assistance, includ- 
ing supply operations, under chapter 2 of part II of the Foreign 
Assistance Act of 1 961 ; 

(2) the acquisition cost of excess defense articles, if any, or- 
dered under pait II of tlie Foreign Assistance Act of 1961 and 
not charged against appropriations for military assistance; 

(3) credits, including participations in credits, extended pursu- 
ant to section 23 of the Foreign Military Sales Act ; and 

(4) the principal amount of loans guaranteed pursuant to sec- 
tion 24(a) of the Foreign Military Sales Act; 

with respect to South Korea shall not exceed $145,000,000 for fiscal 
year 1975 until the President submits a report to the Congress after the 
date of enactment of this Act stating that the irovemment of South 
Korea is making substantial progress in the observance of interna- 
tionally recognized standards of human rights. 

(b) After the submission of the report under subsection (a), the 
aggregate amount described in paragraphs (1), (2), (3). and (4) of 
such subsection with respect to South Korea shall not exceed $165,000,- 
000 for fiscal year 1975. 

(c) The provisions of section 506 and section 614 of the Foreign 
Assistance Act of 1961, or of any other law, may not be used to exceed 
the limitation under subsection (a) or (b). 

LIMITATION ON ASSISTANCE FOR INDIA 

Sec. 27.' The total amount of assistance provided under the Foreign 
Assistance Act of 1961 and of credit sales made or guaranteed under 
the Foreign Military Sales Act for India shall not exceed $50,000,000 
in fiscal year 1975. 

» 22 use 2370 note. 
* 22 use 2370 note. 
" 22 use 2370 note. 



177 



FAMINE OR DISASTER RELIEF 



« 4t • 



Sec. 28.« (a) 

(b) Of the funds appropriated to carry out section 639 of the For- 
eign Assistance Act of 1961, during fiscal year 1975 not less than 

$25,000,000 shall be made available to Cyprus for the purposes of such 
section 639. 



Sec. 


34.^ 


* 


* 




Sec. 


35.^ 


* 


♦ 




Sec. 


36.^ 


* 


* 




Sec. 


37.^ 


* 


* 




Sec. 


38.^ 


* 


* 




Sec. 


39.^ 


* 


* 




Sec. 


40.^ 


* 


* 





Repealed-1976 
Repealed-1976 
Repealed-1976 
Repealed-1976 
Repealed-1976 
Repealed-1976 
Repealed-1976 



NUCLEAR POWERPLANTS 

Sec. 43.® None of the funds authorized by this Act may be used to 
finance the construction of, the operation or maintenance of, or the 
supply of fuel for any nuclear powerplant in Israel or Egypt, which 
has been approved under an agreement for cooperation between the 
United States and either such country. 

OORGAS MEMORIAL INSTITUTE 

Sec. 47.^ The first section of the Act entitled "An Act to authorize a 
permanent annual appropriation for the maintenance and operation 
of the Gorgas Memorial", approved May 7, 1928, is amended by strik- 
ing out "$600,000" and inserting "$2,000,000" in lieu thereof. 



INTERNATIONAL COMMISSION OF CONTROL AND SUPERVISION IN VIETNAM 

Sec. 48.^° (a) There are authorized to be appropriated to the Depart- 
ment of State for fiscal year 1975 not to exceed $16,526,000 for pay- 
ments by the United States to help meet expenses of the International 
Commission of Control and Supervision in Vietnam. Funds appro- 
priated under this subsection are authorized to be made available for 
reimbursement to the Agency for Tntemationl Development of 
amounts expended by the Agency during fiscal year 1975 as interim 
United States payments to help meet expenses of the International 
Commission of Control and Supervision. 

(b) There are authorized to be appropriated to the Department of 
State not to exceed $11,200,000 for reimbursement to the Agency for 
International Development of amounts expended by the Agency for 
International Development to help meet expenses of the International 
Commission on Control and Supervision in fiscal year 1974. 

• 22 use 2S99 note. 

f Sections 34. 3.5. 36. S7, 38. 39. and 40, all relating: to U.S. policy In Indochina, were 
repealed by Sec. 413(a) of the International Security Assistance and Arms Export Control 
Art of 107R For co^iplete text of Sec. 413, see page 311. 

• 22 use 2406 note. 

• 22 use 278. 

M 22 use 2431 note. 



178 

(c) Reimbursements received by the Agency for International 
Development under this section may be credited to applicable appro- 
priations of the Agency and shall be available for the purposes for 
which such appropriations are authorized to be used during fiscal year 
1975. 

POUOY ON ASSISTANCE TO AFRICA 

Sec. 49." The President is requested to review the regional allocation 
of economic development assistance and to increase Africa's share of 
the Agency for International Development loans and grants. A special 
effort should be made to provide more assistance to the sixteen of the 
world's twenty-five least developed countries that are in Africa and 
to the fourteen African nations that are judged to be most seriously 
affected by rising costs of food and fuel. The President is requested to 
make a report to Congress on action taken to provide the developing 
countries of Africa with an equitable share of United States economic 
assistance at the time that the Agency for International Develop- 
ment's operational year budget for fiscal year 1975 is submitted to 
Congress and again with the submission to Congress of the proposed 
Agency for International Development budget for fiscal year 1976. 

POLICY ON THE INDEPENDENCE OT ANGOLA, MOZAMBIQUE, AND 

GUINEA-BISSAU 

Sec. 50." (a) (1) Congress finds that the Government of Portugal's 
recognition of the right to independence of the African territories of 
Angola, Mozambique, and Guinea-Bissau marks a significant advance 
toward the goal of self-determination for all the peoples of Africa, 
without which peace on the continent is not secure. 

(2) Congress finds that progress toward independence for the Por- 
tuguese African territories will have a significant impact on the inter- 
national organizations and the community of nations. 

(3) Congress commends the Portuguese Government's initiatives on 
these fronts as evidence of a reaffirmation of that Government's sup- 
port for her obligations under both the United Nations Charter and 
the Xorth Atlantic Treaty Organizations. 

(b) Therefore, Congress calls upon the President and the Secretary 
of State to take the following actions designed to make clear United 
States support for a peaceful and orderly transition to independence 
in the Portuguese African territories : 

(1) £a. official statement should be issued of United States sup- 
port for the independence of Angola, Mozambique, and Guinea- 
Bissau, and of our desire to have good relations with the future 
governments of the countries. 

(2) It should be made clear to the Government of Portugal that 
we view the efforts toward a peaceful and just settlement of the 
conflict in the African territories as consistent with Portugal's 
obligations under the North Atlantic Treaty Organization 
partnership. 

(3) The United States should encourage United Nations sup- 
port for a peaceful transition to independence, negotiated settle- 
ment of all differences, and the protection of human rights of all 
citizens of the three territories. 



^ 22 use 2166 note. 
" 22 use 2166 note. 



I 



179 

(4) The United States slioiild open a dialog with potential lead- 
ers of Angola, Mozambique, and Guinea-Bissau and assure them 
of our commitment to their genuine political and economic 
independence. 

(5) The economic development needs of the three territories 
will be immense when independence is achieved. Therefore, it is 
urged that the United States Agency for International Develop- 
ment devote attention to assessing the economic situation in 
Angola, Mozambique, and Guinea-Bissau and be ready to co- 
operate with the future governments in providing the kind of 
assistance that will help make their independence viable. In addi- 
tion, the United States Government should take the initiative 
among other donors, both bilateral and multilateral, in seeking 
significant contribution of development assistance for the three 
territories. 

(6) In light of the need of Angola. Mozambique, and Guinea- 
Bissau for skilled and educated manpower, a priority consid- 
eration should be given to expanding current United States 
programs of educational assistance to the territories as a timely and 
substantive contribution to their independence. 

(c) Reports should be submitted to the Congress on the implemen- 
tation of the proposals set forth in subsection (b) and Congress should 
be kept fully informed on developments in United States policy to- 
ward the independence of the Portuguese African territories. 

CONVENTIONAL ARMS TRADE 

Sec. 51.^^ (a) It is the sense of the Congress that the recent growth 
in international transfers of conventional arms to developing nations — 

(1) is a cause for grave concern for the United States and 
other nations in that in particular areas of the world it increases 
the danger of potential violence among nations, and diverts scarce 
world resources from more peaceful uses : and 

(2) could be controlled progressively through negotiations and 
agreements among supplier and recipient nations. 

(b) Therefore, the President is urged to propose to the Geneva 
Conference of the Committee on Disarmament that it consider as a 
high priority agenda item discussions among participating nations 
of that Conference for the purposes of — 

(1) agreeing to workable limitations on conventional arms 
transfers ; and 

(2) establishing a mechanism through which such limitations 
could be effectively monitored. 

(c) The President shall transmit to the Congress not later than six 
months after the enactment of this Act a report setting forth the steps 
he has taken to carry out this section. 

INVOLVEMENT OF PUERTO RICO IN THE CARIBBEAN DEVELOPMENT BANK 

Sec. 52. (a) The President may transmit to the Caribbean Develop- 
ment Bank an instrument stating that the Commonwealth of Puerto 
Rico has the authority to conclude an agreement of accession with such 

" 22 use 2551 note. 



180 

Bank and to assume rights and obligations pursuant to such agree- 
ment. However, such agreement may only be concluded after it has 
been approved by the United States Secretary of State. 

(b) The instrument transmitted by the President to the Caribbean 
Development Bank under subsection (a) shall state that the United 
States shall not assume any financial or other responsibility for the 
performance of any obligation incurred by the Commonwealth of 
Puerto Rico pursuant to such agreement of accession or pursuant to 
any other aspect of its membership or participation in such Bank. 

(c) Such agreement of accession shall provide that the Common- 
wealth of Puerto Rico may not receive from the Caribbean Develop- 
ment Bank any funds provided to the Bank by the United States. 



POLICY WITH RESPECT TO COUNTRIES MOST SERIOUSLY AFFECTED BY 
FOOD SHORTAGES 

Sec. 55." (a) The United Nations has designated thirty-two coun- 
tries as "Most Seriously Affected" by the current economics crisis. 
These are countries without the internal food production capability or 
the foreign exchange availability to secure food to meet their imme- 
diate food requirements. The Congress calls upon the President and 
Secretary of State to take the following actions designed to mobilize 
appropriate resources to meet the food emergency : 

(1) Review and make appropriate adjustments in the level of 
programming of our food and fertilizer assistance programs with 
the aim of increasing to the maximum extent feasible the volume 
of food and fertilizer available to those countries most seriously 
affected by current food shortages. 

(2) Call upon all traditional and potential new donors of food, 
fertilizer, or the means of financing these commodities to immedi- 
ately increase their participation in efforts to address the 
emergency food needs of the developing world. 

(3) Make available to these most seriously affected countries 
the maximum feasible volume of food commodities, with appro- 
priate regard to the current domestic price and supply situations. 

(4) Maintain regular and full consultation with the appro- 
priate committees of the Congress and report to the Congress and 
the Nation on steps which are being taken to help meet this food 
emergency. In accordance with this provision, the President shall 
report to the Congress on a global assessment of food needs for 
fiscal year 1975, specifying expected food grain deficits and cur- 
rently planned programming of food assistance, and steps which 
are being taken to encourage other countries to increase their par- 
ticipation in food assistance or the financing of food assistance. 
Such report should reach the Congress promptly and should be 
supplemented quarterly for the remainder of fiscal year 1975. 

(5) The Congress directs that during the fiscal year ending 
June 30, 1975, not more than 30 percent of concessional food 
aid should be allocated to countries other than those which are 

" 22 use 2175 note. 



181 

most seriously affected by current food shortages, unless the Presi- 
dent demonstrates to the appropriate Committees of the Congress 
that the use of such food assistance is solely for humanitarian 
food purposes. 

(6) The Congress calls upon the President to proceed with 
the implementation of resolutions and recommendations adopted 
by the World Food Conference, The Congress believes that it is 
incumbent upon the United States to tSke a leading role in 
assisting in the development of a viable and coherent world food 
policy which would begin the task of alleviating widespread 
hunger and suffering prevalent in famine-stricken nations. The 
President shall report to the Congress within 120 days of enact- 
ment of this Act on the implementation of the resolutions and 
the extent to which the United States is participating in the 
implementation of resolutions adopted at the World Food 
Conference. 

REPAYMENT OP LOANS IN DEFAULT 

Sec. 56.^^ It is the sense of the Congress that any country receiving 
assistance under the Foreign Assistance Act of 1961 which is in default, 
at least 90 days prior to the date of enactment of this Act, of any pay- 
ment of principal or interest due on any loan or credit received from 
the United States shall promptly pay all such principal and interest. 
It is further the sense of the Congress that the President shall promptly 
enter into negotiations with each such country to help effectuate the 
payment of such principal and interest, or to effectuate the transfer 
by such country to the United States of goods, services, concessions, 
or actions beneficial to the United States, in lieu of the payment of 
such principal and interest. 

« 22 use 2370 note. 



e. Foreign Assistance Act of 1973 

Partial text of Public Law 93-189 [S. 1443], 87 Stat. 714, approved 
December 17, 1973 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Foreign Assistance Act of 1973". 



Note. — Except for the provisions noted below, the FAAct of 
1973 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, the 1971 Act to amend the FMS Act, and 
Sec. 414 of the Mutual Security Act of 1954. For text of section 
12(c) of the FAAct of 1973, see footnote 689 on page 158 of text. 



* * * 

ASIAN DEVELOPMENT BANK ^ 



Sec. 28.2 Section 17 of the Asian Development Bank Act is amended 
by striking out "$60,000,000 for fiscal year 1972 and $iO,000,000 for 
fiscal year 1973" and inserting in lieu thereof "100,000,000". 

Sec. 29.'» * * * [Repealed— 1974] 



TERMINATION OF INDOCHINA WAR 

Sec. 30.* No funds authorized or appropriated under this or any 
other law may be expended to finance military or paramilitary opera- 
tions by the United States in or over Vietnam, Laos, or Cambodia. 

LIMITATION ON USE OF FUNDS 

Sec. 31.* No funds authorized or appropriated under any provision 
of law shall be made available for the purpose of financing directly or 
indirectly any military or paramilitary combat operations by foreign 
forces in Laos, Cambodia, North Vietnam, South Vietnam, or Thai- 
land unless (1) such operations are conducted by the forces of that 
government receiving such funds within the borders of that country, 
or (2) specifically authorized by law enacted after the date of enact- 
ment of this Act. 



1 For text of Act. see Vol. II, page 236. 
» 22 use 251 note. 

' Former section 29 regarding access to certain military bases abroad was repealed by 
section 29(b) of the FAAct of 1974. 
* 22 use 2151 note. 
6 22 use 2151 note. 

(182) 



183 



POLITICAL PRISONERS 



Sec. 32.® It is the sense of Congress that the President should deny 
any economic or military assistance to the government of any foreign 
country which practices the internment or imprisonment of that coun- 
try's citizens for political purposes. 

ALBERT SCHWEITZER HOSPITAL 

Sec. 33.^ There is authorized to be appropriated to the President for 
fiscal year 1974 $1,000,000 ® to make grants, on such terms and condi- 
tions as he may specify, to the Albert Schweitzer Hospital in Gabon. 

PRISONERS OF WAR AND INDIVIDUALS MISSING IN ACTION 

Sec. 34.® (a) The Congress declares that — 

(1) the families of those one thousand three hundred individ- 
uals missing in action during the Indochina conflict have suffered 
extraordinary torment in ascertaining the full and complete infor- 
mation about their loved ones who are formally classified as 
missing in action ; 

(2) United States involvement in the Indochina conflict has 
come to a negotiated end with the signing of the Vietnam Agree- 
ment in Paris on January 27, 1973, and section 307 of the Second 
Supplemental Appropriations Act, 1973, requires that "None of 
the funds herein appropriated under this Act may be expended to 
support directly or indirectly combat activities in or over Cam- 
bodia, Laos, North Vietnam and South Vietnam or off the shores 
of Cambodia, Laos, North Vietnam and South Vietnam by United 
States forces, and after August 15, 1973, no other funds hereto- 
fore appropriated under any other Act may be expended for such 
purpose." ; 

(3) the question of the return of prisoners of war and account- 
ing for individuals missing in action and dead in Laos is covered 
by article 18 of the Protocol signed by representatives of the Lao 
Patriotic Front (Pathet Lao) and the Koyal Laotian Government 
in Vientiane on September 14, 1973 (which implements article 5 
of the Agreement signed by the Pathet Lao and that government 
in Vientiane on February 21, 1973, requiring the release of all 
prisoners "regardless of nationality" captured and held in Laos) , 
and paragraph C of such article 18 provides that, within "15 to 
30 days" from the date of the signing of the Protocol, each side is 
to report the number of those prisoners and individuals still held, 
with an indication of their nationality and status, together with a 
list of names and any who died in captivity ; and 

(4) few of the United States men lost in Laos during the mili- 
tary engagements in Indochina have been returned, and with 
knowledge about many of these men not yet being fully disclosed, 
and the North Vietnam cease-fire provisions calling for inspection 
of crash and grave sites and for other forms of cooperation have 
not been fully complied with. 



•22 use 2151 note. 
T 22 use 2151 note. 

• FA Appropriations Act, 1974 : $1,000,000. 

• 22 use 2151 note. 



184 

(b) It is, therefore, the sense of the Congress that — 

(1) the provisions for the release of prisoners and an account- 
ing of individuals missing and dead, as provided for in article 18 
of the Protocol signed on September 14, 1973, by the Pathet Lao 
and the Koyal Laotian Government, be adhered to in spirit and 
in deed ; and 

(2) the faithful compliance with the spirit of the Laotian 
Agreement and Protocol on the question of individuals missing 
in action will encourage all parties in Indochina to cooperate in 
providing complete information on all nationals of any nation 
who may be captured or missing at any place in Indochina. 

RIGHTS IN CHILE 

Sec. 35.^° It is the sense of the Congress that (1) the President 
should request the Government of Chile to protect the human rights 
of all individuals, Chilean and foreign, as provided in the Universal 
Declaration of Human Rights, the Convention and Protocol Relating 
the Status of Refugees, and other relevant international legal instru- 
ments guaranteeing the granting of asylum, safe conduct, and the hu- 
mane treatment or release of prisoners; (2) the President should sup- 
port international humanitarian initiatives by the United Nations 
High Commissioner for Refugees and the International Committee of 
the Red Cross to insure the protection and safe conduct and resettle- 
ment of political refugees, the humane treatment of political prisoners, 
and the full inspection of detention facilities under international aus- 
pices; (3) the President should support and facilitate efforts by 
voluntary agencies to meet emergency relief needs; and (4) the 
President should request of the Inter-American Commission on Hu- 
man Rights to undertake an immediate inquiry into recent events 
occurring in Chile. 

REVISION OF SOCIAL PROGRESS TRUST FUND AGREEMENT 

Sec. 36." (a) The President or his delegate shall seek, as soon as 
possible, a revision of the Social Progress Trust Fund Agi-eement 
(dated June 19, 1961) between the United States and the Inter- Amer- 
ican Development Bank. Such revision should provide for the — 

( 1 ) periodic transfer of unencumbered capital resources of such 
trust fund, and of any future repayments or other accruals other- 
wise payable to such trust fund, to the Inter- American Founda- 
tion, to be administered by the Foundation for purposes of part 
IV of the Foreign Assistance Act of 1969 " (22 U.S.C. 290f and 
following) ; 

(2) utilization of such unencumbered capital resources, future 
repayments, and other accruals by the Inter-American Develop- 
ment Bank for purposes of sections 1 and 2 of the Latin American 
Development Act " (22 U.S.C. 1942 and 1943) in such a way that 
the resources received in the currencies of the more developed 
member countries are utilized to the extent possible for the benefit 
of the lesser developed member countries ; or 

10 22 use 2151 note. 
^ 22 use 2151 note. 

12 For text, see page 191. 

13 For text, see page 223. 



185 

(3) both the transfer described in paragraph (1) and the uti- 
lization described in paragraph (2) . 

(b) Any transfer or utilization under this section shall be in such 
proportions as may be agreed to between the United States and the 
Inter- American Development Bank. 

(c) Any transfer under subsection (a) (1) shall be in the amounts, 
and in available currencies, determined in consultation with the Inter- 
American Foundation, to be required for its program purposes. 

(d) The revision of the Social Progress Trust Fund Agreement pur- 
suant to this section shall provide that the President or his delegate 
shall specify, from time to time, after consultation with the Inter- 
American Development Bank, the particular currencies to be used in 
making the transfer or utilization described in the section. 

(e) Not later than January 1, 1974, the President shall report to 
Congress on his action taken pursuant to this section. 

PROHIBITION ON ASSISTANCE TO NORTH VIETNAM 

Sec. 37.^* Notwithstanding any other provision of law, no funds 
authorized by this Act shall be expended to aid or assist in the recon- 
struction of the Democratic Republic of Vietnam (North Vietnam), 
unless by an Act of Congress assistance to North Vietnam is specifically 
authorized. 

REPORT CONCERNING CERTAIN USE OF MILITARY ASSISTANCE IN AFRICA 

Sec. 38." The President of the United States shall, as soon as prac- 
ticable following the date of the enactment of this Act, make a deter- 
mination and report to Congress with respect to the use, if any, by any 
non-African country in support of its military activities in its African 
territories of — 

(1) assistance furnished under the Foreign Assistance Act of 
1961 after the date of the enactment of this Act ; 

(2) defense articles or services furnished after such date under 
the Foreign Military Sales Act; or 

(3) agricultural commodities furnished after such date under 
the Agricultural Trade Development and Assistance Act of 1954. 

WORLD FOOD SHORTAGES 

Sec. 39.**' (a) It is the sense of the Congress that the United States 
should participate fully in efforts to alleviate current and future food 
shortages which threaten the world. To this end, the President shall— 
(1) encourage, support, and expedite studies relating to the 
long-range implications of the world food situation (including 
studies of national and world production, distribution, and utili- 
zation of agricultural commodities and other foodstuffs) and sup- 
port the organizing of a world food conference under United 
Nations auspices in 1974; 

" 22 use 2151 note. 
« 22 use 2151 note. 
" 22 use 2220 note. 



20-818 O - 78 - 13 



186 

(2) request the member nations of the General Agreement on 
Tariffs and Trade to explore the means for assuring equitable 
access by all nations to national markets and mineral and agri- 
cultural resources; 

(3) consult and cooperate with appropriate international 
agencies, such as the Food and Agriculture Organization of the 
United Nations, in determining the need for, the feasibility of, 
and cost on an equitably-shared basis of, establishing an inter- 
national system of strategic food reserves ; and 

(4) report his findings and recommendations to the Congress 
on the implementation of this section no later than December 31, 
1974. 

(b) It is further the sense of the Congress that — 

(1) in making assessments which would affect or relate to the 
level of domestic production, the Executive Branch should include 
in the estimates of overall utilization the expected demands for 
humanitarian food assistance through such programs as are 
carried out under the Agricultural Trade Development and As- 
sistance Act of 1954 (Public Law 480) ; and 

(2) legislation providing increased flexibility for responding 
to emergency and humanitarian requirements for food assistance 
should be considered as promptlv as possible to the end that the 
last sentence of section 401 of the Agricultural Trade Develop- 
ment and Assistance Act of 1954 (Public Law 480), may be 
amended by striking the period and inserting in lieu thereof a 
comma and the following: "unless the Secretary determines that 
some part of the exportable supply should be used to carry out 
the national interest and humanitarian objectives of this Act." 

USE OF LOCAL CURRENCIES" 

Sec. 40." Effective July 1, 1974, no amount of any foreign currency 
(including principal and interest from loan repayments) which ac- 
crues in connection with any sale for foreign currency under any pro- 
vision of law may be used under any agreement entered into after the 
date of the enactment of this Act, or any revision or extension entered 
into after such date of any prior or subsequent agreement, to provide 
any assistance to any foreign country to procure equipment, ma- 
terials, facilities, or services for the common defense, including inter- 
nal security unless such agreement is specifically authorized by legisla- 
tion enacted after such date. 



1^ See Use of Foreign Currencies section on page 235 for additional information. 
" 22 use 2151 note. 



f. Foreign Assistance Act of 1971 

Partial text of Public Law 92-226 [S. 2819], 86 Stat. 20, approved February 7, 1972 

AN ACT To amend the Foreign Assistance Act of 1961, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Foreign Assistance Act of 1971". 

FOOD-FOR-PEACE PROGRAM 

Sec. 2.^ It is the sense of the Congress that funds to administer the 
food-for-peace program should not be reduced as the result of any 
reduction in the authorizations provided to carry out the Foreign 
Assistance Act of 1961. 



Note. — Except for the provisions quoted here, the FAAct of 
1971 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, the 1971 Act to amend the FMS Act, the Act 
to authorize participation by the United States in the Interpar- 
liamentary Union, the Joint Resolution to authorize participa- 
tion by the United States in parliamentary conferences of the 
North Atlantic Treaty Organization, Part IV of the FAAct of 
1969, the Act to provide certain basic authority for the Depart- 
mentment of State, the United States Information and Educa- 
tional Exchange Act of 1948, the Special FAAct of 1971, and 
P.L. 89-367 (Armed Forces Appropriation Authorization, 1966) . 



Sec. 304. * * * 

(c) ♦ * ♦ 

(3) The provisions of this subsection ^ and section 657 of such Act, 
as added by subsection (b) of this Act, shall apply with respect to each 
fiscal year commencing on or after July 1, 1971. 

PART IV— MISCELLANEOUS PROVISIONS 
* * ♦ « « « 

Sec. 403. Paragraph (9) of section 5314 of title 5, United States 
Code, relating to level III of the Executive Schedule, is amended by 

1 22 U.S.C. § 2151 note. For text of Food for Peace Act of 1966, see page 383. 

2 This subsection provided that the definition of "Value" appearing in Sec. 644 (m) is 
not applicable when the word "Value" is used in Sec. 657. 

(187) 



188 

inserting before the period at the end thereof the following: "and an 
Under Secretary or State for Coordinating Security Assistance 
Programs". 

Sec. 407." (a) It is purpose of this section to enable the Congress 
generally, and the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Representatives in 
particular, to carry out the purposes and intent of the Legislative 
Reorganization Acts of 1946 and 1970, with respect to — 

(1) the analysis, appraisal, and evaluation of the application, 
administration, and execution of the laws relating to the Depart- 
ment of State and the United States Information Agency and of 
matters relating to the foreign relations of the United States; 
and 

(2) providing periodic authorizations of appropriations for 
that Department and Agency. 

* 4t * * * « « 

Sec. 410.* The Congress strongly urges the President to undertake 
such negotiations as may be necessary to implement that portion of 
the recommendations of the Report of the President's Commission for 
the Observance of the Twenty-fifth Anniversary of the United 
Nations (known as the "Lodge Commission") which proposes that the 
portion of the regular assessed costs to be paid by the United States 
to the United Nations be reduced so that the United States is assessed 
in each year not more than 25 per centum of such costs assessed all 
members of the United Nations for that year. 

' See Section 15 of the Act to provide certain basic authority for the Department of 
state and Section 701 of the United States Information and Educational Exchange Act of 
1J>48 (pajjes 491 and 685). 

* See Vol. II, page 324 of text for appropriations limitation on contributions to inter- 
national organizations. 



g. Special Foreign Assistance Act of 1971, as amended 

Partial text of Public Law 91-652 [H.R. 19911], 84 Stat. 1942, approved January 5, 
1971, as amended by Public Law 92-226 [Foreign Assistance Act of 1971; 
S. 2819], 86 Stat. 27, 35, approved February 7, 1972 

AN ACT To provide additional foreign assistance authorizations, and for 

other purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^semhled^ That this Act may 
be cited as the "Special Foreign Assistance Act of 1971". 

Sec. 2. There are authorized to be appropriated to the President 
for the fiscal year 1971 not to exceed — 

(1) $85,000,000 for additional military assistance and $70,000,- 
000 for special economic assistance for Cambodia ; 

(2) $100,000,000 for economic and military assistance programs 
to replace funds which were transferred by the President for use 
in Cambodia ; 

(3) $150,000,000 for additional military assistance for the Ke- 
public of Korea ; 

(4) $30,000,000 for additional military assistance for Jordan ; 

(5) $3,000,000 for additional military assistance for Indonesia 
and $10,000,000 to replace funds transferred from other programs 
for use in Indonesia ; 

(6) $5,000,000 for additional military assistance for Lebanon; 

(7) $65,000,000 for additional supporting assistance for Viet- 
nam; and 

(8) $17,000,000 for additional general military assistance to 
compensate for a shortage in anticipated recovery of funds from 
past years' programs. 

Sec. 3.^ The President is authorized, until June 30, 1972, to trans- 
fer to the Republic of Korea such defense articles located in Korea 
and belonging to the Armed Forces of the United States on July 1, 
1970, as he may determine, except that no funds heretofore or here- 
after appropriated under this Act or the Foreign Assistance Act of 
1961 shall be available for reimbursement to any agency of the United 
States Government for any transfer made pursuant to this section. 

Sec. 4. Except as otherwise provided in this Act, any assistance fur- 
nished out of funds appropriated under section 2 of this Act and any 
transfer made under section 3 of this Act shall be furnished or trans- 
ferred, as the case may be, in accordance with all of the purposes and 
limitations applicable by statute to that type of assistance or transfer 
under the Foreign Assistance Act of 1961 (including the provisions of 
section 652 ^ of such Act, as added by section 8 of this Act) . 

Sec. 5.3 [Amended Sec. 402 of the FAAct]. 

1 22 use 2302 note. 

2 For text of Sec. 652 as added to the FAAct of 1961 by Sec. 8 of this Act, see page 156. 

3 Sec. 202(b) of the FAAct of 1971 repealed chapter 4 of part I of FAAct of 1961. as 
amended. 

(189) 



190 



Sec. 6. (a)* [Amended Sec. 451(a) of the FAAct]. 

(b)' Excess foreign currencies held in Pakistan not allocated on the 
date of enactment of this section are authorized to be appropriated 
for a period of one year from such date of enactment to help Pakistan 
withstand the disaster which has occurred. 

Sec. ?.• (a) In line with the expressed intention of the President 
of the United States, none of the funds authorized or appropriated 
pursuant to this or any other Act may be used to finance the introduc- 
tion of United States ground combat troops into Cambodia, or to 
provide United States advisers to or for military, paramilitary, po- 
lice, or other security or int<^lligence forces ^ in Cambodia. 

(b) Military and economic assistance provided by the United States 
to Cambodia and authorized or appropriated pursuant to this or any 
other Act shall not be construed as a commitment by the United States 
to Cambodia for its defense. 

Sec. 8.® [Added Sec. 652. Limitation Upon Additional Assistance 
to Cambodia, to the FAAct]. 

*22 use 12261(a). See page 71 of text for Sec. 451(a) of the FAAct of 1961. as 
amended. 

6 22 use S 2261 note. 

•22 use S 2411 note. 

' The words "military, paramilitary, police, or other security or Intelligence forces" 
were substituted In lieu of "Cambodian military forces" by Sec. 408 of the Foreign Assist- 
ance Act of 1971. 

• See page 136 for text of Sec. 652 of the FAAct of 1961, as amended. 

NoTB. — Sections 5, 6(a) and 8 of the Special Foreign Assistance Act of 1971 are amend- 
ments to the Foreign Assistance Act of 1961, as amended. 



h. Foreign Assistance Act of 1969, as amended 

Partial text of Public Law 91-175 [H.R, 14480], 83 Stat. 805, approved Decem- 
ber 30, 1969, as amended by Public Law 92-226 [Foreign Assistance Act of 1971 ; 
S. 2819], 86 Stat. 20, 34, approved February 7, 1972; and by Public Law 95-105 
[H.R. 6689], 91 Stat. 844 at 859, approved August 17, 1977 



Part IV — The Inter- American Foundation Act* 

Sec. 401.* Inter- American Foundation. — (a) There is created as 
an agency of the United States of America a body corporate to be 
known as the Inter- American Foundation (hereinafter in this section 
referred to as the "Foundation" ) .^ 

(b) The future of freedom, security, and economic development in 
the Western Hemisphere rests on the realization that man is the foun- 
dation of all human progress. It is the purpose of this section to pro- 
vide support for developmental activities designed to achieve condi- 
tions in the Western Hemisphere under which the dignity and the 
worth of each human person will be respected and under which all 
men will be afforded tne opportunity to develop their potential, to 
seek through gainful and productive work the fulfillment of their 
aspirations for a better life, and to live in justice and peace. To this 
end, it shall be the purpose of the Foundation,* primarily in coopera- 
tion with private, regional, and international organizations, to — 

(1) strengthen the bonds of friendship and imderstanding 
among the peoples of this hemisphere ; 

(2) support self-help efforts designed to enlarge the oppor- 
tunities for individual development ; 

(3) stimulate and assist enective and ever wider participation 
of the people in the development process ; 

(4) encourage the establishment and growth of democratic 
institutions, private and governmental, appropriate to the require- 
ments of the individual sovereign nations of this hemisphere. 

In pursuing these purposes, the Foundation shall place primary 
emphasis on the enlargement of educational opportunities at all levels, 
the production of food and the development of agriculture, and the 

1 Section 406(1) of the Foreign Assistance Act of 1971 substituted the title "Part IV — 
The Inter-American Foundation Act" in lieu of "Part IV — Inter-American Social Develop- 
ment Institute". 

» 22 U.S.C. § 290f. 

'The caption of section 401 and subsection (a) thereof, which were amended by Sec. 
I"^/^^tP^ *?® Foreigrn Assistance Act of 1971. formerly read as follows: "Inter-American 
Social Development Institute. — (a) There is created as an agency of the United States of 
America a body corporate to be known as the 'Inter-American Social Development Institute' 
(hereafter in this section referred to as the 'Institute')." 

X ^^®^f.^^° 406(3) of the Foreign Assistance Act of 1971 amended section 401 by substi- 
tuting "Foundation" in lieu of "Institute" wherever it appears. 

T ^.97^^ — Except for Part IV. which relates to the Inter-American Social Development 
Institute (title changed to The Inter-American Foundation Act by Sec. 406(1) of the 
FAAct of 1971) and Part V, which relates to amendments to other acts, the Foreign 
Assistance Act of 1969 consists of amendments to the Foreign Assistance Act of 1961, 
as amended. 

(191) 



192 

improvement of environmental conditions relating to health, maternal 
and child care, family planning, housing, free trade union develop- 
ment, and other social and economic needs of the people. 

(c) The Foundation shall carry out the purposes set forth in subsec- 
tion (b) of this section primarily through and with private organiza- 
tions, individuals, and international organizations by undertaking or 
sponsoring appropriate research and by planning, initiating, assist- 
ing, financing, administering, and executing programs and projects 
designed to promote the achievement of such purposes. 

(d) In carrying out its functions under this section, the Foundation 
shall, to the maximum extent possible, coordinate its undertakings 
with the developmental activities in the Western Hemisphere of the 
various organs of the Organization of American States, the United 
States Government, international organizations, and other entities 
engaged in promoting social and economic development of Latin 
America. 

(e) The Foundation, as a corporation — 

(1) shall have perpetual succession unless sooner dissolved by 
an Act of Congress; 

(2) may adopt, alter, and use a corporate seal, which shall be 
judicially noticed; 

(3) may make and perform contracts and other agreements 
with any individual, corporation, or other body of persons how- 
ever designated whether within or without the United States of 
America, and with any government or governmental agency, 
domestic or foreign; 

(4) ' shall determine and prescribe the manner in which its 
obligations shall be incurred and its expenses, including expenses 
for representation (not to exceed $10,000 in any fiscal year), 
allowed and paid; 

(5) may, as necessary for the transaction of the business of the 
Foundation, employ, and fix the compensation of not to exceed 
one hundred persons at any one time; 

(6) may acquire by purchase, devise, bequest, or gift, or other- 
wise lease, hold, and improve, such real and personal property as 
it finds to be necessary to its purposes, whether within or without 
the United States, and in any manner dispose of all such real and 
personal property held by it and use as general funds all receipts 
arising from the disposition of such property; 

(7) shall be entitled to the use of the United States mails in the 
same manner and on the same conditions as the executive depart- 
ments of the Government ; 

(8) may, with the consent of any board, corporation, commis- 
sion, independent establishment, or executive department of the 
Governnient, including anj field service thereof, avail itself of the 
use of information, services, facilities, officers, and employees 
thereof in carrying out the provisions of this section ; 

(9) may accept money, funds, property, and services of every 
kind by gift, devise, bequest, grant, or otherwise, and make ad- 

6 Section 401(e)(4) was amended by section 406(4) of the Foreign Assistance Act of 
1971. It formerly read as follows : "(4) shall determine and prescribe the manner in which 
its obligations shall be incurred and Its axpenses allowed and paid ;". 



193 

vances, grants, and loans to any individual, corporation, or other 
body of persons, whether within or without the United States of 
America, or to any government or governmental agency, domestic 
or foreign, when deemed advisable by the Foundation in further- 
ance of its purposes ; 

(10) may sue and be sued, complain, and defend, in its corpo- 
rate name in any court of competent jurisdiction; and 

(11) shall have such other powers as may be necessary and in- 
cident to carrying out its powers and duties under this section. 

(f ) Upon termination of the corporate life of the Foundation all of 
its assets shall be liquidated and, unless otherwise provided by Con- 
gress, shall be transferred to the United States Treasury as the prop- 
erty of the United States. 

(g) The management of the Foundation shall be vested in a board of 
directors (hereafter in this section referred to as the "Board") com- 
posed of seven members appointed by the President, by and with the 
advice and consent of the Senate, one of whom he shall designate to 
serve as Chairman of the Board and one of whom he shall designate 
to serve as Vice Chairman of the Board. Four members of the Board 
shall be appointed from private life. Three members of the Board 
shall be appointed from among officers or employees of agencies of 
the United States concerned with inter- American affairs. Members of 
the Board shall be appointed for terms of six years, except that of the 
members first appointed two shall be appointed for terms of two years 
and two shall be appointed for terms of four years, as designated by 
the President at the time of their appointment. A member of the Board 
appointed to fill a vacancy oc<:urring prior to the expiration of the 
term for which his predecessor was appointed shall be appointed only 
for the remainder of such term ; but upon the expiration of his term of 
office a member shall continue to serve until his successor is appointed 
and shall have qualified. Members of the Board shall be eligible for 
reappointment. 

(h) Members of the Board shall serve without additional compen- 
sation, but shall be reimbursed for actual and necessary expenses not 
in excess of $50 per day, and for transportation expenses, while 
engaged in their duties on behalf of the corporation. 

(i) The Board shall direct the exercise of all the powers of the 
Foundation. 

(j) The Board may prescribe, amend, and repeal bylaws, rules, and 
regulations governing the manner in which the business of the Founda- 
tion may be conducted and in which the powers granted to it by law 
may be exercised and enjoyed. A majority of the Board shall be 
required as a quorum. 

(k) In furtherance and not in limitation of the powers conferred 
upon it, the Board may appoint such committees for the carrying out 
of the work of the Foundation as the Board finds to be for the be^ in- 
terests of the Foundation, each committee to consist of two or more 
members of the Board, which conmiittees, together with officers and 
agents duly authorized by the Board and to the extent provided 
by the Board, shall have and may exercise the powers of the Board 
in tlio mnna^femcnt of the business and affairs of the Foundation. 



194 

(1) • (1 ) The chief executive officer of the Foundation shall be a Pres- 
ident who shall be appointed by the Board of Directors on such terms 
as the Board may determine. The President shall receive compensa- 
tion at the rate provided for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code. 

(2) Experts and consultants, or organizations thereof, may be em- 
ployed as authorized by section 3109 of title 5, United States Code. 

(m) In order to further the purposes of the Foundation there shall 
be established a Council to be composed of such number of individuals 
as may be selected by the Board from among individuals Imowledge- 
able concerning developmental activities in the Western Hemisphere. 
The Board shall, from time to time, consult with the Council con- 
cerning the objectives of the Foundation. Members of the Council shall 
receive no compensation for their services but shall be entitled to 
reimbursement in accordance with section 5703 of title 5, United 
States Code, for travel and other expenses incurred by them in the 
performance of their functions under this subsection. 

(n) The Foundation shall be a nonprofit corporation and shall have 
no capital stock. No part of its revenue, earnings, or other income or 
property shall inure to the benefit of its directors, officers, and em- 
ployees and such revenue, earnings, or other income, or property 
shall be used for the carrying out of the corporate purposes set forth 
in this section. No director, officer, or employee of the corporation 
shall in any manner directly or indirectly participate in the delibera- 
tion upon or the determination of any question affecting his personal 
interests or the interests of any corporation, partnership, or organiza- 
tion in which he is directly or indirectly interested. 

(o) When approved bv the Foundation, in furtherance of its pur- 
pose, the officers and employees of the Foundation may accept and hold 
offices or positions to which no compensation is attached with govern- 
ments or governmental agencies of foreign countries. 

(p) The Secretary of State shall have authority to detail employees 
of any agency under his jurisdiction to the Foundation under such cir- 
cumstances and upon such conditions as he may determine. Any such 
employee so detailed shall not lose any privileges, rights, or seniority 
as an employee of any such agency by virtue of such detail. 

(q) The Foundation shall establish a principal office. The Founda- 
tion IS authorized to establish agencies, branch offices, or other offices in 
any place or places within the United States or elsewhere in any of 
which locations the Foundation may carry on all or any of its opera- 
tions and business. 

(r) The Foundation, including its franchise and income, shall be 
exempt from taxation now or hereafter imposed by the United States, 
or any territory or possession thereof, or by any State, county, munici- 
pality, or local taxing authority. 

(s) (1) Notwithstanding any other provision of law, not to exceed an 
aggregate amount of $50,000,000 of the funds made available for the 
fiscal years 1970 and 1971 to carry out part I of the Foreign Assist- 
ance Act of 1961 shall be available to carry out the purposes of this 

•Section 406(5) of the Foreign Assistance Act of 1971 amended section 401(1), which 
formerly read as follows: "(1) The chief executive officer of the Institute shall be an 
Executive Director who shall be appointed by the Board of Directors on such terms as the 
Board may determine. The Executive Director shall receive compensation at the rate 
provided for level IV of the Executive Schedule under section 5315 of title V, United 
States Code." 



195 

section. Funds made available to carry out the purposes of this sec- 
tion under the preceding sentence are authorized to remain available 
until expended. 

(2) ' There is authorized to be appropriated not to exceed $25,000,000 
for each of the fiscal years 1979 and 1980 to carry out the purposes of 
this section.^ Amounts appropriated under this paragraph are author- 
ized to remain available until expended. 

(t) The Foundation shall be subject to the provisions of the Govern- 
ment Corporation Control Act. 

Part V — Amendments to Other Acts 

Sec. 501. Section 101 of the Government Corporation Control Act 
(31 U.S.C. 846) is amended by striking out "Development Loan 
Fund;" and inserting in lieu thereof "Overseas Private Investment 
Corporation ;". 

Sec. 502. (a) Section 3343(b) of title 5, United States Code, re- 
lating to details of personnel to international organizations, as 
amended — 

(1) by striking out "3" and inserting in lieu thereof "5"; and 

(2) by striking out the period at the end of such section and 
inserting in lieu thereof a comma and the following: "except 
that under special circumstances, where the President determines 
it to be in the national interest, he may extend the 5-year period 
for up to an additional 3 years." 

(b) Section 3581(5) of such title, relating to reemployment rights 
•^f personnel who transfer to international organizations, is amended 
by striking out "the first 3 consecutive years after entering the employ 
of the international organization" and inserting in lieu thereof the 
following: "the first 5 consecutive years, or any extension thereof, 
after entering the employ of the international organization". 

(c) Section 3582 (a) of such title, relating to rights of personnel who 
transfer to international organizations, is amended — 

(1) by inserting in clause (1), before the semicolon at the end 
thereof, a comma and the following: "except that such service 
shall not be considered creditable service for the purpose of any 
retirement system for transferring personnel, if such service 
forms the basis, in whole or in part, for an annuity or pension 
under the retirement system of the international organization"; 
and 

(2) by striking out clause (2) and inserting in lieu thereof the 
following : 

"(2) to retain coverage, rights, and benefits under chapters 87 
and 89 of this title, if necessary employee deductions and agency 
contributions in payment for the coverage, rights, and benefits 



'Paragraph (2) was added by Sec. 508 of the Foreign Relations Authorization Act. 
Fisctil Year 1978 (91 Stat. 859). 

8 FA Aporopriation Act. 1978. Title I. Inter-American Foundation: "The Inter-American 
Foundation is authorized to make such expenditures within the limits of funds available 
to it and in accordance with the law, and to make such contracts and commitments 
without regard to fiscal year limitations as provided by section 104 of the Government 
Corporation Control Act. as amended (31 U.S.C. 849). as may be necessary in carrying 
out its authorized programs during the current fiscal year : Provided, That not to exceed 
$7,062,000 shall be available to carry out the authorized programs during the current 
fiscal year." 



196 

for the period of employment with the international organization 
are currently deposited in the Employees' Life Insurance Fund 
and the Employees' Health Benefits Fund, as applicable, and 
the period during which coverage, rights, and benefits are retained 
under this paragraph is deemed service as an employee under 
chapters 87 and 89 of this title,". 

(d) Section 3582(b) of such title, relating to rights of employees 
transferring to international organizations, is amended — 

( 1 ) by striking out, ", except a Congressional employee," in the 
fii-st sentence; 

(2) by striking out of clause (1) "3 years" and inserting in lieu 
thereof "5 years, or any extension thereof," ; and 

(3) by inserting at the end thereof the following new sentences: 
"On reemployment, he is entitled to be paid, under such regula- 
tions as the President may prescribe and from appropriations or 
funds of the agency from which transferred, an amount equal to 
the difference between the pay, allowances, post differential, and 
other monetary benefits paid by the international organization 
and the pay, allowances, post differential, and other monetary 
benefits that would have been paid by the agency had he been de- 
tailed to the international organization imder section 3343 of this 
title. Such a payment shall be made to an employee who is unable 
to exercise his reemployment right because of disability incurred 
while on transfer to an international organization under this sub- 
chapter and, in the case of any employee who dies while on such 
a transfer or during the period after separation from the inter- 
national organization in which he is properly exercising or could 
exercise his reemployment right, in accordance with subchapter 
VIII of chapter 55 of this title. This subsection does not apply 
to a congressional employee nor may any payment provided for in 
the preceding two sentences of this subsection be based on a period 
of employment with an international organization occurring be- 
fore the first day of the first pay period which begins on or after 
the date of enactment of the Foreign Assistance Act of 1969." 

(e) Section 3582(c) of such title, relating to rights of employees 
transferring to international organizations, is amended by striking 
out "3 years" and inserting in lieu thereof the following : "5 years, or 
any extension thereof,". 

(f) Section 3582(d) of such title, relating to agency contributions 
to retirement and insurance programs for personnel who transfer to 
international organizations, is amended to read as follows : 

"(d) During the employee's period of service with the international 
organization, the agency from which the employee is transferred shall 
make contributions for retirement and insurance purposes from the 
appropriations or funds of that agency so long as contributions are 
made by the employee." 

Sec. 503. Subchapter II of chapter 53 of title 5, United States Code, 
is amended — 

(1) by inserting at the end of section 5314, relating to level III 
of the Executive Schedule, the following : 



197 

"(54) President, Overseas Private Investment Corporation.": 

(2) by inserting at the end of section 5315, relating to level IV 
of the Executive Schedule, the following : 

"(92) Executive Vice President, Overseas Private Investment 
Corporation." ; and 

(3) by inserting at the end of section 5316, relating to level 
V of the Executive Schedule, the following : 

" (128) Auditor-General of the Agency for International Devel- 
opment. 

"(129) Vice Presidents, Overseas Private Investment Corpora- 
tion (3)." 



\ 



i. Foreign Assistance Act of 1968 
Public Law 90-554 [H.R. 15263], 82 Stat. 960, approved October 8, 1968 



Note. — Except for Part IV, which related to amendments to 
other acts, and Part V, which related to reappraisal of foreign 
assistance programs, the Foreign Assistance Act of 1968 con- 
sisted of amendments to the Foreign Assistance Act of 1961, as 
amended. 



(198) 



j. Foreign Assistance Act of 1967 
Public Law 90-137 [S. 1872], 81 Stat. 445, approved November 14, 1967 



Note. — The Foreign Assistance Act of 1967 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Joint Resolution 
to authorize participation by the United States in parliamentary 
conferences of the North Atlantic Treaty Organization, the Act 
to authorize participation by the United States in the Interpar- 
liamentary Union, and the Mutual Security Act of 1954. 

(199) 



k. Foreign Assistance Act of 1966 

Public Law 89-583 [H.R. 15750], 80 Stat. 795, approved September 19, 1966 



Note. — The Foreign Assistance Act of 1966 consists wholly of 
amendments to the Foreign Assistance Act of 1961, as amended. 

(200) 



» 



1. Foreign Assistance Act of 1965 

Public Law 89-171 [H.R. 7750], 79 Stat. 653, approved September 6, 1965 

Chapter 4 — Amend:mi:nt to the Agricultural Trade Development 
AND Assistance Act of 1954 



Note. — Except for Chapter 1, which relates to an amendment 
to section 107 of the Agricultural Trade Development and Assist- 
ance Act of 1954, the Foreign Assistance Act of 1965 consists of 
amendments to the Foreign Assistance Act of 1961, as amended. 

Section 107 is now contained in Section 103(d) (4) of the Agri- 
cultural Trade Development and Assistance Act of 1954, as 
amended. For text, see page 343. 



(201) 



20-818 O - 78 - 14 



m. Foreign Assistance Act of 1964 

Partial text of Public Law 88-633 [H.R. 11380], 78 Stat. 1009, approved 

October 7, 1964 



Note. — Except for the provisions quoted here, the Foreign 
Assistance Act of 1964 consists of amendments to tlie Foreign 
Assistance Act of 1964, the Act to authorize participation by the 
United States in the Interparliamentary Union, and the Mutual 
Security Act of 1954. 



* * * « * * « 

Part V — Religious Persecution 

Sec. 501.^ It is the sense of the Congress that the United States 
deeply believes in the freedom of religion for all people and is opposed 
to infringement of this freedom anywhere in the world. The Con- 
gress condemns the persecution of any persons because of their re- 
ligion. It is further the sense of Congress that all persons should be 
permitted the free exercise of religion and the pursuit of their culture. 

1 22 use. S 2151. 

(202) 



\ 



n. Foreign Assistance Act of 1963 
Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963 



Note. — The Foreign Assistance Act of 1963 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Latin American 
Development Act, the Trade Expansion Act of 1962, the Agri- 
cultural Trade Development and Assistance Act of 1954, the For- 
eign Service Act of 1946 ; the Act to provide certain basic author- 
ity for the Department of State, and the Act to authorize partici- 
pation by the United States in parliamentary conferences of the 
North Atlantic Treaty Organization. 



o. Foreign Assistance Act of 1962 

Public Law 87-565 [S. 2996], 76 Stat. 255, approved August 1, 1962 



Note. — The Foreign Assistance Act of 1962 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Act to provide 
certain basic authority for the Department of State, the Mutual 
Educational and Cultural Exchangee Act of 1961, and the Act 
authorizing participation by the United States in the Interparli- 
amentary Union. 

(203) 



2. Foreign Assistance Appropriations 

a. Foreign Assistance and Related Programs Appropriations Act, 

1,978 

Public Law 95-148 [H.R. 7797], 91 Stat. 1230, approved October 31, 1977 

AN ACT Making appropriations for Foreign Assistance and related programs 
for the fiscal year ending September 30, 1978, and for other purposes. 

Be it ermcted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the following 
sums are appropriated, out of any money in the Treasury not other- 
wise appropriated, for Foreign Assistance and related programs for 
the fiscal year ending September 30, 1978, and for other purposes, 
namely : 

TITLE I— FOREIGN ASSISTANCE ACT ACTIVITIES 

FUNDS APPROPRIATED TO THE PRESIDENT 

For expenses necessary to enable the President to carry out the pro- 
visions of the Forei^i Assistance Act of 1961, as amended, and for 
other purposes, to remain available until September 30, 1978, unless 
otherwise specified herein, as follows : 

ECONOMIC ASSISTANCE 

Food and nutrition. Development Assistance: For necessary 
expenses to carry out the provisions of section 103, $515,000,000. 

Population planning, Development Assistance: For necessary 
expenses to carry out the provisions of section 104(a) , $155,000,000. 

Health, Development Assistance : For necessary expenses to carry 
out the provisions of section 104(b), $95,000,000: Provided^ That 
$2,000,000 shall be available for the World Health Organization 
Onchocerciasis Control Program. 

Education and human resources development. Development Assist- 
ance: For necessary expenses to carry out the provisions of section 
105, $76,000,000. 

Technical assistance, energy, research, reconstruction, and selected 
development problems, Development Assistance: For necessary 
expenses to carry out the provisions of section 106, $90,000,000. 

Loan allocation, DeATlopment Assistance : Of the new obligational 
authority appropriated under this Act to carry out the provisions of 
sections 103-106, not less than $310,500,000 shall be available for loans 
for fiscal year 1978 : Provided, That of this amount $75,000,000 shall 
be available for loans repayable within forty years following the 
date on which the funds were initially made available under such 

(204) 



205 

loans; $87,000,000 shall be available for loans repayable within thirty 
years following such date ; and $148,500,000 of such amount shall be 
available for loans repayable within twenty years following such 
date. 

International organizations and programs : For necessary expenses 
to carry out the provisions of section 301 of the Foreign Assistance 
Act of 1961, as amended, and of section 2 of the United Nations Envi- 
ronment Program Participation Act of 1973, $231,250,000, of which 
amount $500,000 shall be for the Organization of American States 
Special Cultural Account, $500,000 shall be for the Organization of 
American States Special Development Assistance Fund, and 
$1,500,000 shall be for the Organization of American States Special 
Multilateral Fund: Provided, That not more than $115,000,000 shall 
be available for the United Nations Development Program : Provided 
further, That no part of any such appropriation for "International 
organizations and programs" may be available to make any contri- 
bution of the United States to the United Nations University, not 
more than $25,000,000 shall be available for the United Nations Chil- 
dren's Fund, not more than $1,000,000 shall be available for the United 
Nations Educational and Training Program for Southern Africa, 
not more than $500,000 shall be available for the United Nations 
Namibia Institute, not more than $3,000,000 shall be available for the 
United Nations Decade for Women, not more than $2,000,000 shall 
be available for the United Nations Capital Development Fund, and 
not more than $5,600,000 shall be available to strengthen the Interna- 
tional Atomic Energy Agency's safeguards program out of the total 
contribution made available to the Agency. 

American schools and hospitals abroad : For necessary expenses to 
carry out the provisions of section 214, $23,750,000. 

Contingency fund: For necessary expenses, $5,000,000, to be used 
for the purposes set forth in section 451. 

International disaster assistance: For necessary expenses to carry 
out the provisions of section 491, $18,500,000. 

Italy relief and rehabilitation assistance: For necessary expenses 
to carry out the provisions of section 495B, $25,000,000. 

Sahel development program: For necessary expenses to carry out 
the provisions of section 121, $50,000,000, to remain available until 
expended: Provided, That no part of such appropriation may be 
available to make any contribution of the United States to the Sahel 
development program in excess of 10 per centum of the total contri- 
butions to such program. 

International narcotics control: For necessary expenses to carry 
out the provisions of section 481, $37,100,000: Provided, That not to 
exceed $3,000,000 shall be for the United Nations Fund for Drug 
Abuse Control : Provided furtlier. That $12,475,000 shall be available 
only for programs in Mexico. 

Payment to the Foreign Service Retirement and Disability Fund : 
For payment to the "Foreign Service Retirement and Disability 
Fund," as authorized by the Foreign Service Act of 1946, as amended, 
$21,450,000. 



206 

Overseas training (forei^i currency program) : For necessary 
expenses to carry out the provisions of section 612, $400,000 in for- 
eign currencies Avhich the Treasury Department declares to be excess 
to tlie normal requirements of the'lTnited States. 

Except for^the Contingency Fund, unobligated balances as of Sep- 
tember 30, 1977, of funds heretofore made available under the author- 
ity of the Foreign Assistance Act of 1961, as amended, are hereby 
continued available for the fiscal year 1978, for the same appropria- 
tion account and under the same terms, conditions, and limitations as 
originally provided in appropnations Acts and amounts certified pur- 
suant to section 1311 of the Supplemental Appropriation Act, 1955, as 
having been obligated against appropriations heretofore made under 
the authority of the Foreign Assistance Act of 1961, as amended, are, 
if deobligated, hereby continued available for the same appropriation 
account and under the same terms, conditions, and limitations as 
originally provided in appropriations Acts: Provided^ That the 
Appropriations Committees of both Houses of the Congress are noti- 
fied fifteen days in advance of the obligation of such funds for activi- 
ties, programs, projects, type of materiel assistance, countries or other 
operations not justified or in excess of the amount justified for fiscal 
year 1978. 

The Mutual Security Appropriation Act, 1956, is amended by strik- 
ing out section 108 thereof, effective as of October 1, 1977.^ 

None of the funds made available under this Act for "Food and 
nutrition. Development Assistance," "Population planning. Develop- 
ment Assistance," "Health, Development Assistance," "Education and 
human resources development. Development Assistance," "Technical 

^Sec. 108 read as follows : 

"Sec. 108. Funds heretofore or hereafter allocated to the Department of Defense from 
any appropriation for military assistance (Including funds consolidated with any such 
appropriation but excepting funds obligated directly against any such appropriation for 
offshore procurement or other purposes) shall be accounted for by geographic area and by 
country solely on the basis of the value of materials delivered and services performed (such 
value to be determined in accordance with the applicable provisions of law governing the 
administration of military assistance). Within the limits of amounts available from funds 
so allocated, the Department of Defense is authorized to incur, in applicable appropria- 
tions, obligations in anticipation of reimbursement from such allocations, and no funds 
80 allocated and available shall be withdrawn by administrative action until the Secretary 
of Defense shall certify that they are not required for liquidation of obligations so in- 
curred. Unobligated amounts of such allocations equal to the value of orders placed with 
the military departments against such allocations shall be reserved and shall remain 
available during the two succeeding fiscal years for making such reimbursements (except 
in case of funds obligated directly against such allocations) only upon the basis of ma- 
terials delivered and services rendered : Provided, That no reimbursements for materials or 
services shall be made after June 30. 1955. until the value of materials delivered and serv- 
ices performed shall equal the amount of expenditures made from all appropriations herein 
and heretofore made for military assistance as of said date : Provided, hftwever. That not 
to exceed $302 000.000. of any reimbursement heretofore made by the Air Force to military 
assistance appropriations as of June 30. 1955. pursuant to the provisions of this section 
shall be considered null and void and materials and services of an equivalent amount shall 
be delivered or performed by the Air Force for military assistance purposes without reim- 
bursement : Provided further. That in the event the President shall determine that sup- 
plies and eauipment ordered aealnst funds so allocated are required for the defense of 
the United States, the amount allocated for supplies and materials required for such pur- 
pose shall be returned to the appropriation from which allocated : Provided further. That 
funds appropriated under the authority of the Mutual Security Act of 1954, as amended, 
for military assistance (including specified amounts of unobligated balances and funds 
consolidated with any such appropriation), amounts certified pursuant to section 1311 of 
the Supplemental Appropriation Act. 1955. and, where authorized by the President, funds 
made available to the Department of Defense under section 401 of the Mutual Security 
Act of 1954, as amended, shall be maintained In one account which shall be used for all 
transactions involving military assistance during the current fiscal year and no expendi- 
ture shall be made from such account except as may be within the limits of the sum of 
the amounts mentioned In this proviso: Provided further. That nothing In this Act shall be 
construed as making any appropriation or fund available for obligation after the end of 
the current fiscal year except as may be necessary for reimbursements authorized herein. 

"Section 110 of the Act of September 3, 1954 (Public Law 778), is hereby repealed." 



207 

assistance, energ}', research, reconstruction, and selected development 
problems. Development Assistance," "International organizations and 
programs," "American schools and hospitals abroad," "Sahel develop- 
ment program," "International narcotics control," "Middle East spe- 
cial requirements fund," "Security supporting assistance," "Operating 
Expenses of the Agency for International Development," "Military 
assistance," "International military education and training." "Foreign 
military credit sales," "Inter-American Foundation," "Peace Corps," 
or "Migration and refugee assistance," shall be available for obliga- 
tion for activities, programs, projects, type of materiel assistance, 
countries, or other operations not justified or in excess of the amount 
justified to the Appropriations Committees for obligation under any 
of these specific headings for fiscal year 1978 unless the Appropria- 
tions Committees of both Houses of the Congress are pre\'iously 
notified fifteen days in advance. 

MIDDLE EAST SPECIAL REQUIREMENTS FUND 

Middle East special requirements fund : For necessary expenses to 
carry out the provisions of section 903 of the Foreign Assistance Act 
of 1961, as amended. $8,000,000: Provided, That none of the funds 
appropriated under this heading may be used to provide a United 
States contribution to the United Nations Relief and Works Agency: 
Provided further, That none of the funds appropriated under this 
heading may be used to carry out those provisions of section 903 of 
the Foreign Assistance Act of 1961 which pertain to the Sinai support 
mission. 

SECURITY SUPPORTING ASSISTANCE 

Security supporting assistance : For necessary expenses to carry out 
the provisions of sections 497, 531, and 533 of the Foreign Assistance 
Act of 1961, as amended, and those provisions of section 903 of the For- 
eign Assistance Act of 1961 which pertain to the Sinai support mission, 
$2,202,200,000 : Provided, That of the funds appropriated under this 
paragraph, $785,000,000 shall be allocated to Israel, $750,000,000 shall 
be allocated to Egypt, $93,000,000 shall be allocated to Jordan, and 
$9,000,000 shall be allocated to Syria. 

Loan Allocation, Security Supporting Assistance : Of the new obli- 
gational authority appropriated under this Act for Security Support- 
ing Assistance, not to exceed $856,800,000 shall be available for grants : 
Provided, That of the amounts available for loans, not to exceed 
$865,400,000 shall be available for loans with maturities in excess of 
thirty years, but not to exceed forty years, following the date on which 
funds were originally made available under such loans. 

UNITED NATIONS FORCES IN CYPRUS 

United Nations Forces in Cyprus: For payments, not otherwise 
provided for, bv the United States to meet the expenses of the United 
Nations Forces m Cyprus, $9,100,000. 

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT 

Operating expenses of the Agency for International Development : 
For necessary expenses to carry out the provisions of section 667 of the 



208 

Foreign Assistance Act of 1961, as amended, $213,000,000: Provided. 
That not more than $94,100,000 of this amount shall be for ATD- 
AVashington Operating Expenses : Provided further, That not to exceed 
$700,000 of funds provided to the Agency for International Develop- 
ment by this Act shall be available for hiring experts and consultants 
pursuant to 5 U.S.C. 3109 and of this amount not to exceed $100,000 
shall be available for hiring experts and consultants who are retired 
employees of the Agency for International Development : Provided 
further, That none of the funds made available by this Act shall be 
available for leasing, purchasing, renovating, or furnishing of housing 
or office space in Cairo, Egypt, except through the Foreign Building 
Operations of the Department of State : Provided further. That not to 
exceed $125,000 of the funds made available by this Act shall be avail- 
able for the Administrator's Development Seminar of the Agency for 
International Development. 

OVERSEAS PRrVATE INVESTMENT CORPORATION 

The Overseas Private Investment Corporation is authorized to make 
such expenditures within the limits of funds available to it and in 
accordance with law (including not to exceed $10,000 for entertain- 
ment allowances), and to make such contracts and commitments with- 
out regard to fiscal year limitations as provided by section 104 of the 
Government Corporation Control Act, as amended (31 U.S.C. 849), 
as may be necessary in carrying out the program set forth in the budget 
for the current fiscal year. 

INTER-AMERICAN FOUNDATION 

The Inter-American Foundation is authorized to make such expend- 
itures within the limits of funds available to it and in accordance with 
the law, and to make such contracts and commitments without regard 
to fiscal year limitations as provided by section 104 of the Government 
Corporation Control Act, as amended (31 U.S.C. 849), as may be 
necessary in carrying out its authorized programs during the current 
fiscal year: Provided, That not to exceed $7,062,000 of previously 
appropriated moneys shall be available to carry out the authorized 
programs during the current fiscal year. 

MILITARY ASSISTANCE 

Military assistance : For necessary expenses to carry out the provi- 
sions of section .503 of the Foreign Assistance Act of 1961, as amended, 
including administrative expenses and purchase of passenger motor 
vehicles for replacement only for use outside of the United States, 
$220,000,000 : Provided, That none of the funds contained in this para- 
graph shall be available for the purchase of new automotive vehicles 
outside of the United States. 

INTERNATIONAL MILITARY EDUCATION AND TRAINING 

International military education and training: For necessary ex- 
penses to carry out the provisions of section 541 of the Foreign 



209 

Assistance Act of 1961, as amended, $30,000,000 : Provided^ That none 
of the funds appropriated under this paragraph shall be used to pro- 
vide international military education and training to the Government 
of Argentina. 

GENERAL PROVISIONS 

Sec. 101.^ None of the funds herein appropriated (other than funds 
appropriated for "International organizations and programs") shall 
be used to finance the construction of any new flood control, reclama- 
tion, or other water or related land resource project or program which 
has not met the standards and criteria used in determining the feasi- 
bility of flood control, reclamation, and other water and related land 
resource programs and projects proposed for construction within the 
United States of America under the Principles and Standards for 
Planning Water and Related Land Resources dated October 25, 1973. 
Sec. 102.^ Except for the appropriations entitled "Contingency 
fund", "International disaster assistance", and "United States emer- 
gency refugee and migration assistance fund", not more than 20 per 
centum of any appropriation item made available by this Act for fiscal 
year 1978 shall be obligated or reserved during the last month of 
availability. 

Sec. 103.'* None of the funds herein appropriated nor any of the 
counterpart funds generated as a result of assistance hereunder or any 
prior Act shall be used to pay pensions, annuities, retirement pay, or 
adjusted service compensation for any persons heretofore or hereafter 
serving in the armed forces of any recipient country. 

Sec. 104.^ None of the funds appropriated or made available pursu- 
ant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used for making payments on any contract for 
procurement to which the United States is a party entered into after 
the. date of enactment of this Act which does not contain a provision 
authorizing- the termination of such contract for the convenience of 
the United States. 

Sec. 105.*^ ^ None of the funds appropriated or made available pursu- 
ant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used to pay in whole or in part any assessments, 
arrearages, or dues of any member of the United Nations. 

Sec. 106.^ None of the funds contained in title I of this Act may be 
used to carry out the provisions of sections 209(d) and 251(h) of the 
Foreign Assistance Act of 1961, as amended. 

2 First enacted as section 103 of the iMutual Security Appropriation Act of 1960. 

3 First enacted as section 108 of the Mutual Security Appropriation Act of 1955. 
* First enacted as section 107 of the Mutual Security Appropriation Act of 1959. 

5 First enacted as section 110 of the Foreign Assistance Appropriation Act, 1963. 

« First enacted as section 114 of the Foreign Assistance Appropriation Act, 1964. 

^ A section which was first enacted as section 113 of the Foreign Assistance Appropria- 
tion Act, 1963 and had appeared at this point, was deleted from the Foreign Assistance 
and Related Programs Approoriations Act. 1978. This section had annually placed a 
ceilinc: on funds used to carry out centrally funded research under sections 105 and 106 
^^ }^^ Foreign Assistance Act of 1961 (Education and Human Resources Development: 
and Technical Assistance, Energy, Research, Reconstruction, and Selected Development 
Prohlems). 

8 First enacted as section 121 of the Foreign Assistance Appropriation Act. 1970. Foreign 
Assistance Anpropriation Act. 1971. inchif^ed the reference to section 251(h). Sec. 101(d) 
of the FAAct of 1971 repealed section 205 and Sec. 101(c)(2) of the FAAct of 1971 
added the reference to section 209(d). 



210 

Sec. 107.® None of the funds appropriated or otherwise made avail- 
able pursuant to this Act shall be obligated or expended to finance 
directly any assistance or reparations to Uganada, Cambodia, Laos, or 
the Socialist Republic of Vietnam. 

Sec. 108.^° Of the fimds appropriated or made available pursuant to 
this Act, not to exceed $118,000 shall be for official residence expenses 
of the Agency for International Development during fiscal year 1978 : 
Providedr^ That appropriate steps shall be taken to assure that, to the 
maximum extent possible. United States-owned foreign currencies 
are utilized in lieu of dollars. 

Sec. 109.^^ Of the funds appropriated or made available pursuant 
to this Act, not to exceed $15,000 shall be for entertainment expenses 
of the Agency for International Development during fiscal year 1978. 

Sec. 110.^^ Of the funds appropriated or made available pursuant 
to this Act, not to exceed $96,000 shall be for representation allowances 
of the Agency for International Development during fiscal year 1978 : 
Provided^ That appropriate steps shall be taken to assure that, to the 
maximum extent possible, United States-owned foreign currencies are 
utilized in lieu of dollars. 

Sec. 111. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $73,900 shall be for entertainment expenses 
relating to the Military Assistance Program, International Military 
Education and Training, and Foreign Military Credit Sales during 
fiscal year 1978 : Provided^ That appropriate steps shall be taken to 
assure that, to the maximum extent possible. United States-owned for- 
eign currencies are utilized in lieu of dollars. 

Sec. 112. None of the funds appropriated or made available (other 
than funds for "International organizations and programs") pursu- 
ant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used to finance the export of nuclear equipment, 
fuel, or technology or to prorvide assistance for the training of foreign 
nationals in nuclear fields. 

Sec. 113. Funds appropriated by this Act may not be obligated or 
expended to provide security assistance to any country for the purpose 
of aiding directly the efforts of the government of such country to 
repress the legitimate rights of the population of such country con- 
trary to the Universal Declaration of Human Rights. 

Sec. 114. None of the funds appropriated or made available pur- 
suant to this Act shall be obligated or expended to finance directly 
any assistance to Mozambique or Angola. 

Sec. 115. None of the funds made available by this Act may be obli- 
gated under an appropriation account to which they were not appro- 
priated without the written prior approval of the Appropriations 
Committees of both Houses of the Congress. 

8 First enacted as section 111 of the Foreign Assistance Appropriations Act. 1974. The 
words "South Vietnam, Cambodia, or Laos" were added in 1976 while in 1977 Uffanda was 
added and the references to North and South Vietnam were struck in lieu of the Socialist 
Republic of Vietnam. 

1° First enacted as section 113 of the Foreign Assistance Appropriations Act. 1976. 

11 First enacted as section 114 of the Foreign Assistance Appropriations Act, 1976. 

12 First enacted as section 115 of the Foreign Assistance Appropriations Act, 1976. 



211 

TITLE II— FOREIGN MILITARY CREDIT SALES 
Foreign Military Credit Sales 

For expenses not otherwise provided for, necessary to enable the 
President to carry out the provisions of sections 23 and 24: of the Arms 
Export Control Act, $675,850,000: Pravided, That of the amount pro- 
vided for the total aggregate credit sale ceiling during the current 
fiscal year, not less than $1,000,000,000 shall be allocated to Israel. 

TITLE III— FOREIGN ASSISTANCE (OTHER) 

IXDEPEXDEXT AgENCY 

Action — Ixterxatioxal Programs 
peace corps 

For expenses necessary for Action to carry out the provisions of the 
Peace Corps Act, as amended (22 U.S.C. 2501 et seq.), $82,900,000. 

Department of State 

migration and refugee assistance 

For expenses, not otherwise provided for, necessary to enable the 
Seci-etarv of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross and assistance to ref- 
ugees, inchiding contributions to the Intergovernmental Committee 
for European ^ligration and the L'nited Nations High Commissioner 
for Refugees; salaries and expenses of personnel and dependents as 
authorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 
801-1158) : allowances as authorized by 5 LLS.C. 5921-5925; hire of 
passenger motor vehicles; and services as authorized by 5 U.S.C. 3109 ; 
$53,054,000: Provided. That no funds herein appropriated shall be 
used to assist directly in the migration to any nation in the Western 
Hemisphere of any person not having a security clearance based on 
reasonable standards to insure against Communist infiltration in the 
WesteiTi Hemisphere. 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND 

For necessary expenses to carr^- out the provisions of section 2(c) 
of the Migration and Refugee Assistance Act of 1962, as amended 
(22 U.S.C. 2601), $10,000,000, to remain available until expended. 

Funds Appropriated to the President 

International Financial Institutions 

contributiox to the asian development bank 

For payment to the Asian Development Bank by the Secretary of 
the Treasury of the first installment of (1) the United States share 



212 

of the increase in subscriptions to the (a) paid-in capital stock, and 
(b) callable capital stock, and (2) the United States contribution to 
the increase in resources of the Asian Development Fund, $217,500,000, 
to remain available until expended: Provided, That no such payment 
may be made while the United States Director to the Bank is com- 
pensated by the Bank at a rate which, together with whatever com- 
pensation such Director receives from the United States, is in excess 
of the rate provided for an individual occupying a position at level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code, or while any alternate United State^ Director to the 
Bank is compensated by the Bank in excess of the rate provided for an 
individual occupying a position at level V of the Executive Schedule 
under section 5316 of title 5, United States Code. 

CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK 

For payment to the Inter- American Development Bank by the Sec- 
retary of the Treasui*>' for the United States share of (1) the increase 
in subscriptions to (a) paid-in capital stock, and (b) callable capital 
stock, and (2) the fifth replenishment of the resources of the Fund 
for Special Operations as authorized by the Act of May 31, 1976 
(Public Law 94-302). $523,000,000, to remain available until 
expended: Provided^ That no such payment may be made while the 
United States Executive Director to the Bank is compensated by the 
Bank at a rate in excess of the rate provided for an individual occupy- 
ing a position at level IV of the Executive Schedule under section 
5315 of title 5, United States Code, or wliile the alternate United 
States Executive Director to the Bank is compensated by the Bank 
at a rate in excess of the rate provided for an individual occupying a 
position at level V of the Executive Schedule under section 5316 of 
title 5, United States Code. 

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION 

AND DEVELOPMENT 

For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury for the first installment 
of the United States share of the increase in subscriptions to the (1) 
paid-in capital stock, and (2) callable capital stock, $400,000,000, to 
remain available until expended: Provided^ That no such payment 
may be made while the United States Executive Director to the Bank 
is compensated by the Bank at a rate in excess of the rate provided 
for an individual occupying a position at level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, or while 
the alternate United States Executive Director to the Bank is com- 
pensated by the Bank at a rate in excess of the rate provided for all 
individual occupying a position at level V of the Executive Schedule 
under section 5316 of title 5, United States Code. 

CONTRIBUTION TO THE INTERNATIONAL FINANCE CORPORATION 

For payment to the International Finance Corporation by the Sec- 
retary of the Treasury for the first installment of the United States 
share of the increase in subscriptions to capital stock, $38,000,000, to 
remain available until expended. 



213 

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION 

For payment to the International Development Association by the 
Secretary of the Treasury for the first installment of the United States 
contribution to the fifth replenishment ; $800,000,000 to remain avail- 
able until expended : Pro'vided^ That no such payment may be made 
while the United States Executive Director to the International Bank 
for Reconstruction and Development is compensated by the Bank at a 
rate in excess of the rate provided for an individual occupying a posi- 
tion at level IV of the Executive Schedule under section 5315 of title 
5, United States Code, or while the alternate United States Executive 
Director to the Bank is compensated by the Bank at a rate in excess of 
the rate provided for an individual occupying a position at level V 
of the Executive Schedule under section 5316 of title 5, United States 
Code. 

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND 

For payment by the Secretary of the Treasury for the final install- 
ment of the initial United States contribution to the African Develop- 
ment Fund as authorized by the Act of May 31, 1976 (Public Law 
94-302) , $10,000,000, to remain available until expended. 

FUTURE UNITED STATES CONTRIBUTIONS TO THE INTERNATIONAL 
FINANCIAL INSTITUTIONS ^^ 

It is the sense of the Senate that the United States share of contri- 
butions to future replenishments of the International Financial In- 
stitutions should not exceed the percentages enumerated below for 
each of the respective accounts within these institutions : 
Asian Development Bank : 

Paid-in capital, 16.3 percent; 

Callable capital, 16.3 percent; 

Asian Development Fund, 22.2 percent; 
African Development Bank : 

Special Fund, 10.6 percent; 
Inter- American Development Bank : 

Paid-in ordinary capital, 34.5 percent ; 

Callable ordinary capital, 34.5 percent; 

Paid-in interregional capital, 34.5 percent ; 

Callable interregional capital, 34.5 percent ; 

Fund for Special Operations, 40 percent ; 
International Bank for Reconstruction and Development: 

Paid-in capital, 18.7 percent; 

Callable capital, 18.7 percent ; 
International Development Association, 25 percent; 
International Finance Corporation, 23 percent. 

TITLE IV— EXPORT-IMPORT BANK OF THE UNITED 

STATES 

The Export-Import Bank of the United States is hereby authorized 
to make such expenditures within the limits of funds and borrowing 

"22 use 262c note. 



214 

authority available to such corporation, and in accord with law, and 
to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Government Corpora- 
tion Control Act, as amended, as may be necessary in carrying out the 
program set forth in the budget for the current fiscal year for such 
corporation, except as hereinafter provided : Provided^ That none of 
the funds available during the current fiscal year may be used to make 
expenditures, contracts, or commitments for the export of nuclear 
equipment, fuel, or technology to any country other than a nuclear- 
weapon State as defined in Article IX of the Treaty on the Non- 
Proliferation of Nuclear Weapons eligible to receive economic or 
military assistance under this Act that has detonated a nuclear ex- 
plosive after the date of enactment of this Act. 

Limitation on Progr^vm Activity 

Not to exceed $5,458,207,000 (of which not to exceed $3,600,000,000 
shall be for direct loans) shall be authorized during the current fiscal 
year for other than administrative expenses. 

Limitation on Administrative Expenses 

Not to exceed $1*2,695,000 (to be computed on an accrual basis) 
shall be available during the current fiscal year for administrative 
expenses, including hire of passenger motor vehicles, services as 
authorized by 5 U.S.C. 3109, and not to exceed $24,000 for entertain- 
ment allowances for members of the Board of Directors: Provided^ 
That (1) fees or dues to international organizations of credit institu- 
tions engaged in financing foreign trade, (2) necessary expenses 
(including special services performed on a contract or a fee basis, but 
not including other personal services) in connection with the acqui- 
sition, operation, maintenance, improvement, or disposition of any 
real or personal property belonging to the Bank or in which it has an 
interest, including expenses of collections of pledged collateral, or the 
investigation or appraisal of any property in respect to which an 
application for a loan has been made, and (3) expenses (other than 
internal expenses of the Bank) incurred in connection with the issu- 
ance and servicing of guarantees, insurance, and reinsurance, shall 
be considered as nonadmini strati ve expenses for the purposes hereof. 

TITLE V— GENERAL PROVISIONS 

Sec. 501.^* No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not heretofore authorized by the Congress. 

Sec. 502.1^ ^^ No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein. 



1* First enacted as section 102 of the Mutual Security Appropriation Act, 1958. 

15 First enacted as section 403 of the Foreign Assistance Appropriations Act. 1967. 

"A section, which was first enacted as section 101(d) of the Mutual Security Appro- 
priations Act. 1960, and had anpeared at this point, was deleted from this Act. This sec- 
tion called for a termination of funds to the Insnector General. Foreign Assistance, If he 
did not, within 35 days, honor a request from Congress or GAO for information under 
his custody or control. 



215 

Sec. 503.^^ No part of any appropriation contained in this Act shall 
be used to furnish assistance to any country which is in default dur- 
ing a period in excess of one calendar year in payment to the United 
States of principal or interest on any loan made to such country by the 
United States pursuant to a program for which funds are appropri- 
ated under this Act unless (1) such debt has been disputed by such 
country prior to the enactment of this Act or (2) such country has 
either arranged to make payment of the amount in arrears or other- 
wise taken appropriate steps, which may include renegotiation, to 
cure the existing default. 

Sec. 503A.^^ None of the funds appropriated or made available pur- 
suant to this Act shall be used to provide military assistance, inter- 
national military education and training, or foreign military credit 
sales to the Governments of Ethiopia and Uruguay. 

Sec. 503B. None of the funds appropriated or made available pur- 
suant to this Act shall be used to provide foreign military credit sales 
to the Governments of Argentina, Brazil, El Salvador, and Guatemala. 

Sec. 503C. Of the funds appropriated or made available pursuant to 
this Act, not more than $18,100,000 shall be used for military assist- 
ance, not more than $1,850,000 shall be used for foreign military credit 
sales, and not more than $700,000 shall be used for international mili- 
tary education and training to the Government of the Philippines. 

Sec. 504.^^ None of the funds appropriated by this Act shall be 
available for the Office of the Inspector General of Foreign Assistance. 

Sec. 505.2° None of the funds appropriated or made available pur- 
suant to this Act shall be available to any international financial insti- 
tution whose United States' representative cannot upon request obtain 
the amounts and the names of borrowers for all loans of the inter- 
national financial institution, including loans to employees of the 
institution, or the compensation and related benefits of employees of 
the institution. 

Sec. '506. None of the funds appropriated in this Act shall be used 
for any form of aid or trade, either by monetary payment or by the 
sale or transfer of any goods of any nature, directly to Cuba. 

Sec. 507.^^ It is the sense of the Congress that, where other means 
have proven ineffective in promoting international human rights, and 
except where the President determines that the cause of international 
human rights is served more effectively by actions other than voting 
against such assistance or where the assistance is directed to programs 
that serve the basic needs of the impoverished majority of the country 
in question, United States representatives to the International Bank 
for Reconstruction and Development, the International Development 
Association, the African Development Fund, the Asian Development 
Bank, and the Inter-American Development Bank should oppose loans 
and other financial or technical assistance to any country that persists 

" First enacted as section 506 of the Foreign Assistance Appropriation Act, 1976. 
18 First enacted as section 505 of the Foreign Assistance Appropriations, 1977. The 
reference to Ethiopia was added in 1977. 

'» First enacted as section 505A of the Foreign Assistance Appropriations Act, 1977. 
20 First enacted as section 506 of the Foreign Assistance Appropriations Act, 1977. 
2122 use 262d-l. 



216 

in a systematic pattern of ^ross violations of fundamental human 
rights. 

Sec. 508. Notwithstanding the budget authority levels of 
$528,000,000 for the Inter-American Development Bank and 
$400,000,000 for the International Bank for Reconstruction and 
Development provided elsewhere in this Act, not more than 
$480,000,000 shall be made available by this Act for obligation or 
expenditure for a United States contribution to the Inter-American 
Development Bank and not more than $380,000,000 shall be made 
available by this Act for obligation or expenditure for a United States 
contribution to the International Bank for Keconstruction and Devel- 
opment : Provided^ That this section shall apply only to the establish- 
ment of budget authority levels for the aforementioned Banks and 
shall not alter limitations, restrictions or other language provisions 
elsewhere in this Act. 

Sec. 509. None of the funds appropriated or otherwise made avail- 
able by this Act to the Export-Import Bank and funds appropriated 
by this Act for direct foreign assistance may l)e obligated for any gov- 
ernment which aids or abets, by granting sanctuary from prosecution 
to, any individual or group which has committed an act of interna- 
tional terrorism, unless the President of the United States finds that 
the national security requires otherwise. 

Sec. 510. It is the sense of the Congress that the Secretary of State 
should prepare and submit to the Speaker of the House of Represent- 
atives and to the President of the Senate — 

(1) not later than six months after the date of enactment of 
this section, a report on the adequacy of insurance provided by the 
accredited diplomatic missions to the United States to cover loss 
or injury arising from the wrongful acts or omissions of the 
employees of such missions in the United States; 

(2) not later than one year after the date of enactment of this 
section, a report on what efforts the President and the Secretary 
of State have made to encourage the provision of such coverage ; 
and 

(3) not later than six months after the date of enactment of this 
section, a report on what the Secretary of State has done to encour- 
age the Government of Panama to make satisfactory compensation 
to Dr. Halla Brown for loss or injury arising out of the accident 
of April 20, 1974. 

TITLE VI— ROMANIAN RELIEF AND REHABILITATION 

Sec. 601. For expenses necessary to carry out the provisions of 
section 4951D of the Foreign Assistance Act of 1961, as amended, 
$13,000,000 for the fiscal year 1977 for Romanian relief and rehabili- 
tation assistance, to remain available until expended. 

This Act may be cited as the "Foreign Assistance and Related Pro- 
grams Appropriations Act, 1978". 



217 



Note. — Sec. 117 of the Foreign Aid and Kelated Agencies 
Appropriation Act, 1964, provides: "Keceipts of United States 
dollars in the Development Loan Fund and Alliance for Progress 
revolving funds derived from loan repayments and interest col- 
lections, may hereafter, when so specified in appropriation Acts, 
be used for the purposes for which such revolving funds are 
available." 



Note. — Title I of the Foreign Assistance and Related Pro- 
grams Appropriation Act, 1975 (Public Law 94—11), provides: 
"That the total number of flag and general officers of the United 
States Armed Forces assigned or detailed to military assistance 
advisory groups, military missions, or similar organizations, or 
performing dutes primarily with respect to the Military Assist- 
ance Program and the Foreign Military Sales Program shall not 
exceed twenty after May 1, 1975." 



20-818 O - 78 - 15 



b. Supplemental Appropriations Act, 1977 

Partial text of Public Law 95-26 [H.R. 4877], 91 Stat. 61, approved May 4, 1977 

AN ACT Making supplemental appropriations for the fiscal year ending 
September 30, 1977, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That the following 
sums are appropriated out of any money in the Treasury not other- 
wise appropriated to supply supplemental appropriations (this Act 
may be cited as the "Supplemental Appropriations Act, 1977") for the 
fiscal year ending September 30, 1977, and for other purposes, namely : 



CHAPTER IV 

FOREIGN OPERATIONS 

Funds Appropriated to the President 

ECX)N0MIC assistance 

international organizations and programs 

For an additional amount for "International organizations and pro- 
grams", $31,000,000 : Provided^ That of the funds appropriated under 
this paragraph, $3,000,000 shall be allocated for a contribution to the 
International Atomic Energy Agency to strengthen the Agency's 
safeguards program, and $28,000,000 shall be allocated for a con- 
tribution to the United Nations Relief and Works Agency. 

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITr FUND 

For an additional amount for "Payment to the Foreign Service 
Retirement and Disability Fund", $4,570,000. 

ISRAEL-UNITED STATES BINATIONAL INDUSTRIAL RESEARCH AND 
DEVELOPMENT FOUNDATION 

For necessary expenses as authorized by section 104(b) (3) of the 
Agricultural Trade Development and Assistance Act of 1954, as 
amended, $30,000,000, for payment by the Secretary of the Treasury 
of the equivalent of $30,000,000 Israeli pounds to be obtained by the 
prepayment of a portion of Israel's local currency debt to the United 
States, as the United States share of the endowment of the Israel- 
United States Binational Industrial Research and Development Foun- 
dation, to remain available until expended. 

(218) 



219 

MILITARY ASSISTANCE 

For necessary expenses to carry out military assistance to Portugal, 
$17,250,000 : Provided^ That this appropriation shall be made avail- 
able only upon enactment into law of authorizing legislation. 

Independent Agency 

Action — International Programs 

peace corps 

The first proviso under this heading of the Foreign Assistance and 
Related Programs Appropriations Act, 1977, Public Law 94-441, is 
amended by striking out "$49,563,000" and substituting in lieu thereof 
"$48,907,000". 

Department of State 

migration and refugee assistance 

For an additional amount for "Migration and refugee assistance", 
$18,725,000, to remain available until December 31, 1977 : Provided^ 
That of the funds appropriated under this paragraph, $3,000,000 shall 
be allocated for reception and placement of refugees in the United 
States : Provided further^ That this appropriation shall be made avail- 
able only upon enactment into law of authorizing legislation. 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND 

For an additional amount for "United States Emergency Refugee 
and Migration Assistance Fund", $3,660,000, to remain available until 
expended. 

Funds Appropriated to the President 

International Financial Institutions 

investment in ASIAN DEVELOPMENT BANK 

For payment by the Secretary of the Treasury of the United States 
share of the initial resource mobilization of the Asian Development 
Fund, authorized by the Asian Development Bank Act of December 22, 
1974 (Public Law 93-537), $25,000,000, to remain available until 
expended. 

INVESTMENT IN INTER-AMERICAN DEVELOPMENT BANK 

For payment to the Inter- American Development Bank by the 
Secretary of the Treasury of the United States share of the increase 
in subscription to capital stock and in the resources of the Fund for 
Special Operations, as authorized by the Inter- American Development 
Bank Act of May 31, 1976 (Public Law 94-302), $316,000,000, to 
remain available until expended ; of which not more than $36,000,000 
shall be available for paid-in capital stock, not more than $120,000,000 
shall be available for callable capital stock, and not more than 
$160,000,000 shall be available for the Fund for Special Operations. 



220 

INVESTMENT IN INTERNATIONAL DEVELOPMENT ASSOCIATION 

For payment by the Secretary of the Treasury of the remaining 
portion of the first installment of the United States contribution to the 
fourth replenishment of the resources of the International Develop- 
ment Association, as authorized by the International Development 
Association Act of August 14, 1974 (Public Law 93-373), $55,000,000, 
to remain available until expended. 

OPERATING EXPENSES OP THE AGENCY FOR INTERNATIONAL DEVELOPMENT 

None of the funds made available for Operating Expenses of the 
Agency for International Development in fiscal year 1977 shall be 
available for leasing, purchasing, renovating, or furnishing of housing 
or office space in Cairo, Eg}'pt, except through the Foreign Building 
Operations of the Department of State. 



c. Supplemental Appropriation Act, 1955 

Partial text of Public Law 84-663 [H.R, 9936], 68 Stat. 800, 830; 31 U.S.C. 200, 
approved August 26, 1954, as amended by Public Law 86-79 [General Govern- 
ment Matters Appropriation Act, 1960; H.R. 7176], 73 Stat. 167, approved July 8, 
1959 



Chapter XIII — General Provisions 

4: :?: * 4: * 4: * 

Sec. 1311. (a) After the date of enactment hereof no amount shall 
be recorded as an obligation of the Government of the United States 
unless it is supported by documentary evidence of — 

(1) a binding agreement in writing between the parties thereto, 
including Government agencies, in a manner and form and for a 
purpose authorized by law, executed before the expiration of the 
period of availability^ for obligation of the appropriation or fund 
concerned for specific goods to be delivered, real property to be 
purchased or leased, or work or services to be performed ; or 

(2) a valid loan agreement, showing the amount of the loan to 
be made and the terms of repayment thereof ; or 

(3) an order required by law to be placed with a Government 
agency; or 

(4) an order issued pursuant to a law authorizing purchases 
without advertising when necessitated by public exigency or for 
perishable subsistence supplies or within specific monetary limi- 
tations ; or 

(5) a grant or subsidy payable (i) from appropriations made 
for payment of or contributions toward, sums required to be paid 
in specific amounts fixed by law or in accord with formulae pre- 
scribed by law, or (ii) pursuant to asrreement authorized by, or 
plans approved in accord with and authorized by, law; or 

(6) a liability which may result from pending litigation 
brouffht under authority of law: or 

(7) employment or services of persons or expenses of travel 
in accord with law, and services performed by public utilities: or 

(8) any other leiral liability of the United States against an 
appropriation or fund lefrally available therefor. 

(b)^ Hereafter, in connection with the submission of all requests 

1 Sec. 210 of the General Government Matters Appropriation Act, 1960, amended this 
subsection, which formerly read : 

"(b) Not later than September 30 of each year, the head of each Federal agency shall 
report, as to each appropriation or fund under the control of such agency, the amount 
thereof remaining obli]Erated but unexpended and the amount thereof remaining unobligated 
on June 30 of such year and copies of such report shall be forwarded by him to the chair- 
man of the Committees on Appropriations of the Senate and the House "of Renresentatives. 
to the Comptroller General of the United States, and to the Director of the Bureau of the 
Budget : Provideil. That such report for the fiscal year ending June 30. 1954. shall be made 
not later than December 31. 1954. and shall include only such obligations as could have 
been recorded under the provisions of subsection (a) hereof." 

(221) 



222 

for proposed appropriations to the Bureau of the Budget, the head of 
each Federal agency shall report that any statement of obligations 
furnished therewith consists of valid obligations as defined in subsec- 
tion (a) hereof. 

(c) Each report made pursuant to subsection (b) shall be supported 
by certifications of the officials designated by the head of the agency, 
and such certifications shall be suppoiteu oy records evidencing the 
amounts which are reported therein as having been obligated. Such 
certifications and records shall be retained in the agency in such form 
as to facilitate audit and reconciliation for such period as may be 
necessary for such pur])oses. The officials designated by the head of 
the agency to make certifications may not redelegate the responsibility. 

(d) No appropriation or fund which is limited for obligation pur- 
poses to a definite period of time shall be available for expenditure 
after the expiration of such period except for liquidation of amounts 
obligated in accord with subsection (a) hereof; but no such appro- 
priation or fund shall remain available for expenditure for any 
period beyond that otherwise authorized by law. 

(e) Any statement of obligation of funds furnished by any agency 
of the Government to the Congress or any committee thereof shall 
include only such amounts as may be A-alid obligations as defined in 
subsection (a) hereof. 



3. Other Foreign Assistance Related Legislation 
a. Latin American Development Act, as amended 

Public Law 86-735 [H.R. 13021], 74 Stat. 869, approved September 8, 1960, as 
amended by the Foreign Assistance Act of 1961, Public Law 87-195 [S. 1983], 
75 Stat. 424, approved September 4, 1961, and the Foreign Assistance Act of 
1963, Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963 

AN ACT To provide for assistance in the development of Latin America and in 
the reconstruction of Chile, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Latin American Development Act".^ 

STATEMENT OF POLICY 

Sec. 1.^ (a) It is the sense of the Congress that — 

(1) the historic, economic, political, and geographic relation- 
ships among the American Republics are unique and of special 
significance and, as appropriate, should be so recognized in future 
legislation ; 

(2) although governmental forms differ among the American 
Republics, the peoples of all the Americas are dedicated to the 
creation and maintenance of governments which will promote in- 
dividual freedom; 

(3) the interests of the American Republics are so interrelated 
that sound social and economic progress in each is of importance 
to all and that lack of it in any American Republic may have seri- 
ous repercussions in others ; 

(4) for the peoples of Latin America to continue to progress 
within the framework of our common heritage of democratic 
ideals, there is a compelling need for the achievement of social 
and economic advance adequate to meet the legitimate aspirations 
of the individual citizens of the countries of Latin America for 
a better way of life ; 

(5) there is a need for a plan of hemispheric development, open 
to all American Republics which cooperate in such plan, based 
upon a strong production effort, the expansion of foreign trade, 
the creation and maintenance of internal financial stability, the 
growth of free economic and social institutions, and the develop- 
ment of economic cooperation, including all possible steps to es- 
tablish and maintain equitable rates of exchange and to bring 
about the progressive elimination of trade barriers ; 

(6) mindful of the advantages which the United States has 
enjoyed through the existence of a large domestic market with no 



1 Sec. 401(a) of the FAAct of 1963 Inserted the words "That this Act may be cited as 
the 'Latin American Development Act'." 

2 22U.S.C. § 1942. 

(223) 



224 

internal trade barriers, and believing that similar advantages can 

accrue to all countries, it is the hope of the people of the United 
States that all American Republics will jomtly exert sustained 
common efforts which will speedily achieve that economic coopera- 
tion in the Western Hemisphere which is essential for lasting 
peace and prosperity ; and 

(7) accordingly, it is declared to be the policy of the people of 
the United States to sustain and strengthen principles of individ- 
ual liberty, free institutions, private enterprise, and genuine in- 
dependence in the Western Hemisphere tlirough cooperation with 
all American Republics which participate in a joint development 
program based upon self-help and mutual efforts, 
(b) In order to carry forward the above policy, the Congress 
hereby — 

(1) urges the President through our constitutional processes 
to develop cooperative programs on a bilateral or multilateral 
basis which will set forth specific plans of action designed to foster 
economic progress and improvements in the welfare and level of 
living of all tne peoples of the American Republics on the basis 
of jomt aid, mutual effort, and common sacrifice; 

(2) proposes the development of workable procedures to ex- 
pand hemispheric trade and to moderate extreme price fluctua- 
tions in commodities which are of exceptional importance in the 
economies of the American Republics, and encourages the develop- 
ment of regional economic cooperation among the American 
Republics ; 

(3) supports the development of a more accurate and sympa- 
thetic understanding among the peoples of the American Repub- 
lics through a greater interchange of persons, ideas, techniques, 
and educational, scientific, and cultural achievements; 

(4) supports the strengthening of free democratic trade unions 
to raise standards of living through improved management-labor 
relations ; 

(5) favors the progressive development of common standards 
with respect to the rights and the responsibilities of private invest- 
ment which flows across national boundaries within the Western 
Hemisphere ; 

(6) supports the consolidation of the public institutions and 
agencies of inter- American cooperation, insofar as feasible, within 
the structure of the Organization of American States and the 
strengthening of the personnel resources and authority of the 
Organization in order that it may play a role of increasing impor- 
tance in all aspects of hemispheric cooperation ; and 

(7) declares that it is prepared to give careful and sympathetic 
consideration to programs which the President may develop for 
the purpose of promoting these policies. 

AUTHORIZATION 

Sec. 2.' In order to carry out the purposes of section 1 of this Act, 
there is hereby authorized to be appropriated to the President not to 
exceed $680,000,000,* which shall remain available until expended, and 

'22U.S.C. § 1943. 

*Sec. 401(b) of the FAAct of 1963, substituted "$680,000,000" for "$500,000,000". 
Public Law 87-41, approved May 27, 1961. appropriated $500 million for the Inter- 
American Social and Economic Cooperation Program to remain available until expended. 



225 

which the President may use, subject to such further legislative provi- 
sions as may be enacted, in addition to other funds available for such 
purposes, on such terms and conditions as he may specify : Provided^ 
That none of the funds made available pursuant to this section shall be 
used to furnish assistance to any country in Latin America being sub- 
jected to economic or diplomatic sanctions by the Organization of 
American States. The Secretary of State shall keep the Committee 
on Foreign Relations o.f the Senate and the Committee on Foreign 
Affairs of the House currently informed about plans and programs 
for the utilization of such funds. 

SPECIAL AUTHORIZATION FOR CHILEAN RECONSTRUCTION 

Sec. 3.*^ There is hereby authorized to be appropriated to the Presi- 
dent not to exceed $100,000,000," which shall remain available until 
expended, for use, in addition to other funds available for such pur- 
poses, in the reconstruction and rehabilitation of Chile on such terms 
and conditions as the President may specify. 

GENERAL PROVISIONS ^ 

Sec. 4.® (a) Funds appropriated under sections 2 and 3 of this Act 
may be used for assistance under this Act pursuant to such provisions 
applicable to the furnishing o,f such assistance contained in any suc- 
cessor Act to the Mutual Security Act of 1954, as amended, as the 
President determines to be necessary to carry out the purposes for 
which such funds are appropriated. 

(b) Of the funds appropriated under section 2 of this Act not more 
than $800,000 shall be available only for assisting in transporting^ to 
and settling in Latin America selected immigrants from that portion 
of the Ryukyuan Archipelago under United States administration. 

6 22 TT S C § 1944 

• Public Law 87-41 appropriated "$100,000 000 to remain available Until expended. 
' Section 4 and title "General Provisions" added by Sec. 706 of the FAAct of 1961. 
•22U.S.C. § 1945. 



b. Mutual Security Act of 1959, as amended 

Partial text of Public Law 86-108 [H.R. 7500], 73 Stat. 246; 22 U.S.C. 1896b, 

approved July 24, 1959 

AN ACT To amend further the Mutual Security Act of 1954, as amended, and 

for other purposes. 

Be it enacted by the Senate and Hottse of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Mutual Security Act of 1959". 



Note. — Except for Chapters V, VI, and Sections 702 and 703, 
the whole of the Mutual Security Act of 1969 consisted of amend- 
ments to tlie Mutual Security Act of 1954, as amended, and to 
other laws. 

Note. — Section 501 (b), which related to international coopera- 
tion in health, was repealed by Sec. 602 of the Mutual Security 
Act of 1960. Section 642 of the Foreign Assistance Act of 1961 
repealed Sec. 501(a), Chaptei- VI, and Sections 702 and 703 of 
the Mutual Security Act of 1959, as amended. 



Chapter V — International, Cooperation in Health ; Colombo 
Plan Council for Technical CoorEiurioN 



COLOMBO PLAN COUNCIL FOR TECHNICAL COOPERATION 

Sec. 502. To enable the United States to maintain membership in the 
Colombo Plan Council for Teclmical Cooperation, there is liereby 
authorized to be appropriated from time to time to the Department 
of State such sums as may be necessary for the payment by the United 
States of its share of the expenses of the Colombo Plan Council for 
Technical Cooperation. 

(226) 



H 



c. The Mutual Security Act of 1954, as amended 

Retained provisions of Public Law 83-665 [H.R. 9678], 68 Stat. 832, approved 
August 26, 1954, as amended 

Sec. 402.^ Earmarking of Funds.— Of the funds authorized to be 
made available in the fiscal year 1961 pursuant to this Act (other than 
funds made available pursuant to title II), not less than $175,000,000 
shall be used to finance the export and sale for foreign currencies or 
the grant of surplus agricultural commodities or products thereof pro- 
duced in the United States, in addition to surplus agricultural com- 
modities or products transferred pursuant to the Agricultural Trade 
Development and Assistance Act of 1954, and in accordance with the 
standards as to pricing and the use of private trade channels expressed 
in section 101 of said Act. Foreign currency proceeds accruing from 
such sales shall be used for the purposes of this Act and with particu- 
lar emphasis on the purposes of section 104 of the Agricultural Trade 
Development and Assistance Act of 1954 which are m harmony with 
the purposes of this Act. Notwithstanding section 1415 of the Supple- 
mental Appropriation Act, 1953, or any other provision of law, the 
President may use or enter into agreements with friendly nations or 
organizations of nations to use for such purposes the foreign currencies 
which accrue to the United States under this section. Surplus food 
commodities or products thereof made available for transfer under 
this Act (or any other Act) as a grant or as a sale for foreign curren- 
cies may also be made available to the maximum extent practicable to 
eligible domestic recipients pursuant to section 416 of the Agricultural 
Act of 1949, as amended (7 U.S.C. 1431), or to needy persons within 
the United States pursuant to clause (2) of section 32 of the Act of 
August 24, 1935, as amended (7 U.S.C. 612c). Section 416 of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431), is amended by 
inserting "whether in private stocks or" after "commodities" the first 
time that word appears. 

*♦♦♦♦♦ « 

Sec. 408.2 North Atlantic Treaty Organization.— (a) In order to 
provide for United States participation in the North Atlantic Treaty 
Organization, there is hereby authorized to be appropriated such 
amounts as may be necessary from time to time for the payment by 
the United States of its share of the expenses of the Organization and 
all necessary salaries and expenses of the United States permanent 
representative to the Organization, of such persons as may be ap- 

122 U.S.C. § 1922. As amended by sec. 204(c) of Public Law 86-472 (7'4 Stat. 136), 
which substituted "1961" for "1960". Previous amendments by sec. 205(c) of Public Law 
86-108 (73 Stat. 250), sec. 205(b) of Public Law 85-477 (72 Stat. 266), sec. 8(c) of Public 
Law 85-141 (71 Stat. 361), sec. 8(b) of Public Law 84-726 (70 Stat. 558), and sec. 8(b) 
of Public Law 84-138 (69 Stat. 286), changed the amount authorized and/or the fiscal 
year. 

2 22 U.S.C. § 1928. Sec. 8(h) of Public Law 85-141 (71 Stat. 361), eliminated provisions 
authorizing appropriations of not more than $3,200,000 for the fiscal year 1955. 

(227) 



228 

pointed to represent the United States in the subsidiary bodies of the 
Organization or in any multilateral organization which participates 
in achieving the aims of the North Atlantic Treaty, and of their ap- 
propriate staffs, and the expenses of participation in meetings of such 
organizations, including salaries, expenses, and allowances of per- 
sonnel and dependents as authorized by the Foreign Service Act of 
1946, as amended (22 U.S.C. 801), and allowances and expenses as 
provided in section 6 of the Act of July 30, 1946 (22 U.S.C. 287r). 

(b) The United States permanent representative to the North At- 
lantic Treaty Organization shall be appointed by the President by and 
with the advice and consent of the Senate and shall hold office at the 
pleasure of the President. Such representative shall have the rank 
and status of ambassador extraordinary and plenipotentiary and shall 
be a chief of mission, class 1, within the meaning of the Foreign Serv- 
ice Act of 1946, as amended (22 U.S.C. 801). 

(c)^ Persons detailed to the international staff of the North Atlantic 
Treaty Organization in accordance with section 529 of this Act who 
are appointed as Foreign Service Reserve Officers may serve for pe- 
riods of more than five years notwithstanding the limitation in section 
522 of the Foreign Service Act of 1946, as amended (22 U.S.C. 922). 



Sec. 417." Irish Counterpart. — Pursuant to section 115(b)(6) of 
the Economic Cooperation Act of 1948, as amended, the disposition 
within Ireland of the unencumbered balance, in the amount of ap- 
proximately 6,000,000 Irish pounds, of the special account of Irish 
funds estaolished under article IV of the Economic Cooperation 
Agreement between the United States of America and Ireland dated 
June 28, 1948, for the purposes of — 

(1) scholarship exchange between the United States and 
Ireland ; 

(2) other programs and projects (including the establishment 
of an Agricultural Institute) to improve and develop the agri- 
cultural production and marketing potential of Ireland and to 
increase the production and efficiency of Irish industry ; and 

(3) development programs and projects in aid of the foregoing 
objectives, is hereby approved, as provided in the agreement be- 
tween the Government of the United States of America and the 
Government of Ireland, dated June 17, 1954. 

m * * m • 

Sec. 502.^ Use of Foreign Currency. — (a) Notwithstanding sec- 
tion 1415 of the Supplemental Appropriation Act, 1953, or any other 
provision of law, proceeds of sales made under Section 550 of the 
Mutual Security Act of 1951, as amended, shall remain available and 
shall be used for any purposes of this Act, giving particular regard to 
the following purposes — 

(1) for providing military assistance to nations or mutual de- 
fense organizations eligible to receive assistance under this Act ; 

(2) for purchase of goods or services in friendly nations; 

»Sec. 205(h) of Public Law 86-108 (73 Stat. 250), substituted "five years" for "four 
years" in part (c). 
* 22 U.S.C. § 1937. 
6 22 U.S.C. § 1754. 



I 



229 

(3) for loans, under applicable provisions of this Act, to in- 
crease production of goods or services, including strategic 
materials, needed in any nation with which an agreement was 
negotiated, or in other friendly nations, with the authority to use 
currencies received in repayment for the purposes stated in this 
section or for deposit to the general account of the Treasury of the 
United States ; 

(4) for developing new markets on a mutually beneficial basis; 

(5) for grants-in-aid to increase production for domestic needs 
in friendly countries ; and 

(6) for purchasing materials for United States stockpiles. 

(b) Notwithstanding section 1415 o,f the Supplemental Appropria- 
tion Act, 1953, or any other provision of law, local currencies owned 
by the United States, which are in excess of the amounts reserved un- 
der section 612(a) of the Foreign Assistance Act of 1961, as amended, 
and of the requirements of the United States Government in payment 
of its obligations outside the United States, as such requirements may 
be determined from time to time by the President (and any other local 
currencies owned by the United States in amounts not to exceed the 
equivalent of $75 ^ per day per person exclusive of the actual cost of 
transportation)^ shall be made available to Members and employees 
of ® appropriate committees of the Congress engaged in carrying out 
their duties under section 136 of the Legislative Reorganization Act 
of 1946, as amended, and to the Joint Committee on Atomic Energy 
and the Joint Economic Committee and the Select Committees on 
Small Business of the Senate and House of Representatives for their 
local currency expenses. Each member or employee of any such com- 
mittee shall make, to the chairman of such committee in accordance 
with regulations prescribed by such committee, an itemized report 
showing the amounts and dollar equivalent values of each such foreign 
currency expended and the amounts of dollar expenditures made from 
appropriated funds in connection with travel outside the United 
States, together with the purposes of the expenditure, including lodg- 
ing, meals, transportation, and other purposes. Within the first sixty 
days that Congress is in session in each calendar year, the chairman 
of such committee shall prepare a consolidated report showing the 
total itemized expenditures during the preceding calendar year of 
the committee and each subcommittee thereof, and of each member or 
employee of such committee or subcommittee, and shall forward such 
consolidated report to the Clerk of the House of Representatives (if 
the committee be a committee of the House of Representatives or a 
joint committee whose funds are disbursed by the Clerk of the House) 
or to the Secretary of the Senate (if the committee be a Senate com- 
mittee or joint committee whose funds are disbursed by the Secretary 

• ($75) was substituted for ($50) by Sec. 5(1) of Department of State Appropriations 
Authorization Act. 1973 (Public Law 93-126 ; 87 Stat. 451). 

' The words to this point, beginning with ", which are in excess of the amounts" were 
adder! by Sec. 402 of the FA Act of 100,4. 

'The words "Members and employees of" were Inserted by Sec. 5(2) of Department of 
State Appropriations Authorization Act, 1973 (Public Law 93-126; 87 Stat. 451). 



230 

of the Senate).® Each such consolidated report shall be published in 
the Congressional Record within ten legislative days after it is for- 
warded pursuant to this subsection.^® 

m ***** ^ 

Sec. 514.'^ International Educational Exchange Activities.— 
Foreign currencies or credits owed to or owned by the United States, 
where arising from this Act or otherwise, shall, upon a request from 
the Secretary of State certifying that such funds are required for the 
purpose of mternational educational exchange activities under pro- 
grams authorized by section 32(b)(2) of the Surplus Property Act 
of 1944, as amended, be reserved by the Secretary of the Treasury for 
sale to the Department of State for such activities on the basis of the 
dollar value at the time of the reservation. 

******* 

Sec. 523. Coordination With Foreign Policy.— (a) * * ♦ 

(b) * * ♦ 

^) * * * 

(d) ^^ Wlienever the President determines that the prevention of im- 
proper currency transactions ^^ in a given country rec[uires it, he may 
direct the chief of the United States diplomatic mission there to issue 
regulations applicable to members of the Armed Forces and officers 
and employees of the United States Government, and to contractors 
with the United States Government and their employees, governing 
the extent to which their pay and allowances received and to be used 
in that country shall be paid in local currency. Notwithstanding any 
other law, United States Government agencies are authorized and 
directed to comply with such regulations. 

******* 

Sec. 536.^* Joint Commission on Rural Reconstruction in 
China. — The President is authorized to continue to participate in the 
Joint Commisson on Rural Reconstruction in China and to appoint 
citizens of the United States to the Commission. 



•The words to this point, beginning with "Each member or employee of any such 
committee • • •", were substituted by Sec. 107 of the "Legislative Branch Appropriation 
Act, 1975" (Public Law 03-371. 88 Stat. 424) in lieu of the following : 

"Within the first nlnetv calendnr <Invs fhnt Conprpss Is In session In each calendar 
year, the Department of State shall submit to the chairman of each such committee a 
report showing the amounts and dollar equivalent values of each such foreign currency 
expended during the preceding calendar year by each Member and employee with respect 
to travel outside the United States. Such reports of that committee shall be available for 
public Inspection In the offices of such committee." 

" The last sentence of Sec. 502 was added by Sec. 402 of the Foreign Relations Authori- 
zation Act, Fiscal Year 1977. 

"22 U.8.C. § 1766. 

"22U.S.C. § 1783(d). 

" Section 707 of the FAAct of 1961 substituted the words "prevention of Improper cur- 
rency transactions" In lieu of "achievement of United States foreign policy objectives". 

"22 U.S.C. § 1796. 



d. Mutual Defense Assistance Control Act of 1951, as amended 

(Battle Act) 

Mutual Defense Assistance Control Act of 1951, Public Law 82-213 [H.R. 4550], 
65 Stat. 644, approved October 26, 1951, as amended by Public Law 87-195 
[S. 1983], 75 Stat. 424, 463, approved September 4, 1961 

AN ACT To provide for the control by the United States and cooperating foreign 
nations of exports to any nation or combination of nations threatening the 
security of the United States, including the Union of Soviet Socialist Republics 
and all countries under its domination, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "IVIutual Defense Assistance Control Act of 1951."* 

TITLE I— WAR IVIATERIALS 

Sec. 101.^ The Congress of the United States, recognizing that in 
a world threatened by aggression the United States can best preserve 
and maintain peace by developing maximum national strength and 
by utilizing all of its resources in cooperation with other free nations, 
hereby declares it to be the policy of the United States to apply an 
embargo on the shipment of arms, ammunition, and implements of 
war, atomic energy materials, petroleum, transportation materials of 
strategic value, and items of primary strategic significance used in the 
production of arms, ammunition, and implements of war to any nation 
or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all 
countries under its domination, in order to (1) increase the national 
strength of the United States and of the cooperating nations; (2) 
impede the ability of nations threatening the security of the United 
States to conduct military operations; and (3) to assist the people 
of the nations under the domination of foreign aggressors to re- 
establish their freedom. 

It is further declared to be the policy of the United States that no 
military, economic, or financial assistance shall be supplied to any 
nation unless it applies an embargo on such shipments to any nation 
or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all coun- 
tries under its domination. 

This Act shall be administered in such a way as to bring about the 
fullest support for any resolution of the General Assembly of the 
United Nations, supported by the United States, to prevent the ship- 
ment of certain commodities to areas under the control of govern- 
ments engaged in hostilities in defiance of the United Nations. 



122 U.S. C. 1611 note. 
'22U.S.C. 1611. 



(231) 



232 

Sec. 102.' Responsibility for giving effect to the purposes of this 

Act shall be vested in the person occupying the senior position author- 
ized by subsection (e) of section 406 of the Mutual Defense Assistance 
Act of 1949, as amended, or in any person who may herealter be 
charged with principal responsibility for the administration of the 
provisions of the Mutual Defense Assistance Act of 1949. ISuch person 
is hereinafter referred to as the "Administrator." 

Sec. 103.* (a) The Administrator is hereby authorized and directed 
to determine witliin thirty days after enactment of this Act after 
full and complete consideration of the views of the Departments 
of State, Defense, and Commerce; the Economic Cooperation Admin- 
istration; and any other appropriate agencies, and notwithstanding 
the provisions of any other law, which items are, for the purpose of this 
Act, arms, ammunition, and implements of war, atomic energy ma- 
terials, petroleum, transportation materials of strategic value, and 
those items of primary strategic significance used in the production 
of arms, ammunition, and implements of war which should be 
embargoed to ellectuate the purposes of this Act : Provided^ That such 
determinations shall be continuously adjusted to current conditions 
on the basis of investigation and consultation, and that all nations 
receiving United States military, economic, or financial assistance 
shall be kept informed of such determinations. 

(b) All military, economic, or financial assistance to any nation 
shall, upon the recommendation of the Administrator, be terminated 
forthw^ith if such nation after sixty days from the date of a determi- 
nation under section 103(a) knowingly permits the shipment to any 
nation or combination of nations threatenmg the security of the United 
States, including the Union of Soviet Socialist Republics and all coun- 
tries under its domination, of any item which he has determined under 
section 103(a) after a full and complete investigation to be included 
in any of the following categories: Arms, ammunition, and imple- 
ments of war, atomic energy materials, petroleum, transportation 
materials of strategic value, and items of primary strategic signifi- 
cance used in the production of arms, ammunition, and implements of 
war: Provided^ That the President after receiving the advice of the 
Administrator and after taking into account the contribution of such 
country to the mutual security of the free world, the importance of 
such assistance to the security of the United States, the strategic 
importance of imports received from countries of the Soviet bloc, 
and the adequacy of such country's controls over the export to the 
Soviet bloc of items of strategic importance, may direct the continu- 
ance of such assistance to a country which permits shipments of items 
other than arms, ammunition, implements of war, ana atomic energy 
materials when unusual circumstances indicate that the cessation of 
aid would clearly be detrimental to the security of the United States : 
Provided further^ That the President shall immediately report any 
determination made pursuant to the first proviso of this section witli 
reasons therefor to the Appropriations and Armed Services Commit- 
tees of the Senate and of the House of Representatives, the Committee 
on Foreign Relations of the Senate, and the Committee on Foreign 
Affairs of the House of Representatives, and the President shall at 

3 22 U.S.C. 1611a. 
* 22 U.S.C. 1611b. 



233 

least once each quarter review all determinations made previously 
and shall report his conclusions to the foregoing committees of the 
House and Senate, which reports shall contain an analysis of the 
trade with the Soviet bloc of countries for which determinations have 
been made. 

Sec. 104.^ Whenever military, economic, or financial assistance has 
been terminated as provided in this Act, such assistance can be resumed 
only upon determination by the President that adequate measures 
have been taken by the nation concerned to assure full compliance with 
the provisions of this Act. 

Sec. 105.® For the purposes of this Act the term "assistance" does 
not include activities carried on for the purpose of facilitating the 
procurement of materials in which the United States is deficient. 

TITLE II— OTHER MATERIALS 

Sec. 201.^ The Congress of the United States further declares it to 
be the policy of the United States to regulate the export of commod- 
ities other than those specified in title I of this Act to any nation or 
combination of nations threatening the security of the United States, 
including the Union of Soviet Socialist Republics and all countries 
under its domination, in order to strengthen the United States and 
other cooperating nations of the free world and to oppose and offset by 
nonmilitary action acts which threaten the security of the United 
States and the peace of the world. 

Sec. 202.® The United States shall negotiate with any country re- 
ceiving military, economic, or financial assistance arrangements for 
the recipient country to undertake a program for controlling exports 
of items not subject to embargo under title I of this Act, but which 
in the judgment of the Administrator should be controlled to any 
nation or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all 
countries under its domination. 

Sec. 203.® All military, economic, and financial assistance shall be 
terminated when the President determines that the recipient country 
(1) is not effectively cooperating with the United States pursuant to 
this title, or (2) is failing to furnish to the United States information 
sufficient for the President to determine that the recipient country is 
effectively cooperating with the United States. 

TITLE III— GENERAL PROVISIONS 

Sec. 301.^° All other nations (those not receiving United States 
military, economic, or financial assistance) shall be invited by the 
President to cooperate jointly in a group or groups or on an individual 
basis in controlling the export of the commodities referred to in title 
I and title II of this Act to any nation or combination of nations 
threatening the security of the United States, including the Union 
of Soviet Socialist Republics and all countries under its domination. 

5 22 U.S. C. 1611c. 
•22 U.S.C. leild. 
▼22 use. 1612. 
•22 U.S.C. 1612a. 
•22 U.S.C. 1612b. 
» 22 U.S.C. 1613. 



20-818 O - 78 - 16 



234 

Sec. 302." The Administrator with regard to all titles of this Act 
shall— 

(a) coordinate those activities of the various United States 
departments and agencies which are concerned with security con- 
trols over exports from other countries; 

(b) make a continuing study of the administration of export 
control measures undertaken by foreign governments in accord- 
ance with the provisions of this Act, and shall report to the Con- 
gress from time to time but not less than once every six months 
recommending action where appropriate; and 

(c) make available technical advice and assistance on export 
control procedures to any nation desiring such cooperation. 

Sec. 303." The provisions of subsection (a) of section 403, of section 
404, and of subsections (c) and (d) of section 406 of the Mutual 
Defense Assistance Act of 1949 (Public Law 329, 81st Congress) as 
amended, insofar as they are consistent with this Act, shall be appli- 
cable to this Act. Funds made available for the Mutual Defense Assist- 
ance Act of 1949, as amended, shall be available for carrying out this 
Act in such amounts as the President shall direct. 

Sec. 304.^' In every recipient country where local currency is made 
available for local currency expenses of the United States in con- 
nection with assistance furnished by the United States, the local cur- 
rency administrative and operating expenses incurred in the adminis- 
tration of this Act shall be chargeato such local currency funds to the 
extent available. 

Sec. 305.^* There is hereby authorized to be appropriated to the 
Secretary of State such sums as may be necessary from time to time 
to administer and carry out the objectives of this Act.^* 

"22 U.S.C. 1613a. 

"22 U.S.C 1613b. 

"22 U.S.C. 1613c. 

"22 U.S.C. 1613d. Sec. 703(a) of the FAAct of 1961 substituted new language for 
Sec. 305. It formerly read as follows : "Subsection (d) of Section 117 of the Foreign Assist- 
ance Act of 1948 (Public Law 472. 80th Congress), as amended, and subsection (a) if sec- 
tion 1302 of the Third Supplemental Appropriation Act, 1951 (Public Law 45, 82d Con- 
gress), are repealed." 

« p\\ Appropriation Act, 1975: $4,800,000 for expenses authorized by section 637(b) 
of the Foreign Assistance Act of 1961, as amended, and by section 305 of the Mutual 
Defense Assistance Control Act of 1951, as amended. 



e. Use of Foreign Currencies ^ 

(1) Supplemental Appropriation Act, 1953 (Section 1415) 

Partial text of Public Law 82-547 [H.R. 8370], 66 Stat. 637, 662; 31 U.S.C. 724, 

approved July 15, 1952 

♦ * * ♦ ♦ * * 

Chapter XIV — General Provisions 



Sec. 1415. Foreipi credits owed to or owned by the United States 
Treasury will not be available for expenditure by agencies of the 
United States after June 30, 1953, except as may be provided for 
annually in appropriation Acts and provisions for the utilization of 
such credits for purposes authorized by law are hereby authorized to 
be included in general appropriation Acts. 



Note.— Executive Order No. 10488 of September 23, 1953, 18 
F.R. 5699, authorizes the Secretary of the Treasury to issue reg- 
ulations governing the purchase, custody, transfer or sale of for- 
eign exchange by agencies of the United States. See also sec. 519 
of the Department of Defense Appropriation Act, 1969, Public 
Law 90-580, 82 Stat. 1120, 1133. 



1 See page 186 of text for Use of Local Currencies provision of tlie FAAct of 1973. 

(235) 



(2) General Government Matters Appropriation Act, 1962 

Partial text of Public Law 87-125 [H.R. 7577] 75 Stat. 268, 283, approved 

August 3, 1961 



TITLE V— GENERAL PROVISIONS 

* ****** 

Sec. 508. Pursuant to section 1415 of the Act of July 15, 1952 (66 
Stat. 662),^ foreign credits (including currencies) owed to or owned 
by the United States may be used by Federal agencies for any purpose 
for which appropriations are made for the current fiscal year (includ- 
ing the carrying out of Acts requiring or authorizing the use of such 
credits),* only when reimbursement therefor is made to the Treasury 
from applicable appropriations of the agency concerned: Provided^ 
That such credits received as exchange allowances or proceeds o.f sales 
of personal property may be used in whole or part payment for acqui- 
sition of similar items, to the extent and in the manner authorized by 
law, without reimbursement to the Treasury : Provided further^ That 
nothing in section 1415 of the Act of July 15, 1952, or in this section 
shall be construed to prevent the making of new or the carrving out of 
existing contracts, agreements, or executive agreements for periods 
in excess of one year, in any case where such contracts, agreements, or 
executive agreements for periods in excess of one year were permitted 
prior to the enactment of this Act under section 32(b) (2) of the Sur- 
plus Property Act of 1944, as amended (50 U.S.C. App. 1641(b) (2)), 
and the performance of all such contracts, agreements, or executive 
agreements shall be subject to the availability of appropriations for 
the purchase of credits as provided by law. 



1 For text, see page 235. 

2 The words "and for Uquidation of obligations legally incurred against such credits 
prior to July 1. 1953" appeared at this point in previous General Government Matters 
Appropriation Acts, 1956-1959, and the Supplemental Appropriations Act, 1955. 

(236) 



(3) Use of Reserved Foreign Currencies ^ 

Public Law 89-677 [S. 801], 80 Stat. 955; 31 U.S.C. 938, approved October 15, 1966 

AN ACT To improve the balance-of-payments position of the United States by 
permitting the use of reserved foreign currencies in lieu of dollars for current 
expenditures. 

Be it enacted hy the Senate and House of Representatives of the 
United States of Ainerica in Congress assembled^ That: 

Any foreign currencies held by the United States which have been 
or may be reserved or set aside for specified programs or activities of 
any agency of the Government may be used by Federal agencies for 
any authorized purpose, except (1) that reimbursement shall be made 
to the Treasury from applicable appropriations of the agency con- 
cerned, and (2) that any foreign currencies so used shall be replaced 
when needed for the purpose for which originally reserved or set aside. 

1 See page 186 of text for Use of Foreign Currencies provision of the PAAct of 1973. 

(237) 



f. Amendment to Merchant Marine Act of 1936, as amended 

Public Law 83-€64 [S. 3233], 68 Stat. 832, approved Ausrnst 26, 1954, as amended 
by Public Law 87-266 [H.R. 6732], 75 Stat. 565, approved September 21, 1961, 
and Public Law 91-469 [Merchant Marine Act of 1970; RJR, 15424], 84 Stat. 
1018, 1034, approved October 21, 1970 

AN ACT To amend the Merchant Marine Act, 1936, to provide permanent legis- 
lation for the transportation of a substantial portion of waterborne cargoes 
in United States-flag vessels. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That section 901 of 
the Merchant Marine Act, 1936, as amended,* is hereby amended by 
inserting "(a)" after "Sec. 901." and by adding at the end of the 
section the following new subsection : 

"(b) (1)* whenever the United States shall procure, contract for, or 
otherwise obtain for its own account, or shall furnish to or for the 
account of any foreign nation without provision for reimbursement, 
any equipment, materials, or commodities, within or without the 
United States, or shall advance funds or credits or guarantee the con- 
vertibility of foreign currencies in connection with the furnishing of 
such equipment, materials, or commodities, the appropriate agency or 
agencies shall take such steps as may be necessary and practicable to 
assure that at least 50 per centum of the gross tonnage of such equip- 
ment, materials, or commodities (computed separately for dry bulk 
carriers, dry cargo liners, and tankers) , which may be transported on 
ocean vessels shall be transported on privately owned United States- 
flag commercial vessels, to the extent such vessels are available at fair 
and reasonable rates for United States-flag commercial vessels, in such 
manner as will insure a fair and reasonable participation of United 
States-flag commercial vessels in such cargoes by geographic areas: 
Provided, That the provisions of this subsection may be waived when- 
ever the Congress by concurrent resolution or otherwise, or the Presi- 
dent of the United States or the Secretary of Defense declares that 
an emergency exists justifying a temporary waiver of the provisions 
of section 901(b) (1)' and so notifies the appropriate agency or agen- 
cies : And provided further, That the provisions of this subsection shall 
not apply to cargoes carried in the vessels of the Panama Canal Com- 
pany. Nothing herein shall repeal or otherwise modify the provisions 
of Public Resolution Numbered 17, Seventy-third Congress (48 Stat. 
500)* as amended." * For purposes of this section, the term "privately 
owned United States-flag commerical vessels" shall not be deemed to 
include any vessel which, subsequent to the date of enactment of this 

M6U.S.C. i 1241 

»Sec. 27(a) of Public Law 91-469 [Merchant Marine Act of 1970] redesignated 
subsection (b) as subsection (b)(1). 

•Sec. 27(b) of Public Law 91-469 substituted "section 901(b)(1)" In lieu of "section 
901(b)". 

* 15 U.S.C. § 616a. 

5 See first NOTE on page 370 and Sec. 603 of the FAAct, page 100. 

(238) 



^ 



239 

amendment, shall have been either (a) built outside the United States, 
(b) rebuilt outside the United States, or (c) documented under any 
foreign registry, until such vessel shall have been documented under 
the laws of the United States for a period of three years: Provided, 
however, That the provisions of this amendment shall not apply where, 
(1) prior to the enactment of this amendment, the owner of a vessel, 
or contractor for the purchase of a vessel, originally constructed in 
the United States and rebuilt abroad or contracted to be rebuilt 
abroad, has notified the Maritime Administration in writing of its in- 
tent to document such vessel under United States registry, and such 
vessel is so documented on its first arrival at a United States port not 
later than one year subsequent to the date of the enactment of this 
amendment, or (2) where prior to the enactment of this amendment, 
the owner of a vessel imder United States registry has made a contract 
for the rebuilding abroad of such vessel and has notified the Maritime 
Administration of such contract, and such rebuilding is completed and 
such vessel is thereafter documented under United States registry on 
its first arrival at a United States port not later than one year subse- 
quent to the date of the enactment of this amendment.' 

(2)^ Every department or agency having responsibility under this 
subsection shall administer its programs with respect to this subsec- 
tion under regulations issued by the Secretary of Commerce. The Sec- 
retary of Commerce shall review such administration and shall annu- 
ally report to the Congress with respect thereto. 

•The last part of this subsection, beginning with the words "For purposes of this sec- 
tion." was added by Public Law 87-266. 

' Subsection (2) was added by Sec. 27(c) of Public Law 91-469. 



S:. The Sugar Act of 1948, as amended 

Partial text of Public Law 80-338 [H.R. 4075], 61 Stat. 933, approved Au^st 8, 
1947, as amended by Public Law 87-535 [H.R. 12154], 76 Stat. 156, 166, approved 
July 13, 19G2; Public Law 89-331 [H.K. 111351, 79 Stat. 1271, approved Novem- 
ber 8, 1965; and by Public Law 92-138 [BJL 8866], 85 Stat. 379, 389, approved 
October 14, 1971 

V ***** ♦ 

Sec. 408.* ♦ ♦ * 

(c) In any case in which a nation or a political subdivision thereof 
has, on or after January 1, 1961, (1) nationalized, expropriated, or 
otherwise seized the ownership or control of the property or business 
enterprise owned or controllea by United States citizens or any corpo- 
ration, partnership, or association not less than 50 per centum benefi- 
cially owned by United States citizens, or (2) imposed upon or 
enforced against such property or business enterprise so owned or con- 
trolled, discriminatory taxes or other exactions, or restrictive mainte- 
nance or operational conditions (including limiting or reducing par- 
ticipation in production, export, or sale oi sugar to the United States 
under quota allocation pursuant to this Act) not imposed or enforced 
with respect to the property or business enterprise of a like nature 
owned or operated by its own nationals or the nationals of any govern- 
ment other than the Government of the United States, or (3) imposed 
upon or enforced against such property or business enterprise so owned 
or controlled, discriminatory taxes or other exactions, or restrictive 
maintenance or operational conditions (including limiting or reducing 
participation in production, export, or sale of sugar to the Unitea 
States under quota allocation pursuant to this Act), or has taken other 
actions, which have the effect of nationalizing. expix)priating or other- 
wise seizing ownership or control of such property or business enter- 
prise, or (4) violated the provisions of any bilateral or multilateral 
international agreement to which the United States is a party, designed 
to protect such property or business enterprise so owned or controlled, 
ana has failed within six months following the taking of action in any 
of the above categories to take appropriate and adequate steps to rem- 
edy such situation and to discharge its obligations under international 
law toward such citizen or entity, including the prompt payment to the 
owner or owners of such property or business enterprise so national- 
ized, expropriated or otherwise seized or to provide relief from such 
taxes, exactions, conditions or breaches of such international agree- 
ments, as the case may be, or to arrange, with the agreement of the 
parties concerned, for submitting the question in dispute to arbitration 
or conciliation in accordance with procedures under which final and 
binding decision or settlement will be reached and full payment or 
arrangements with the owners for such payment made within twelve 
months following such submission, the President may withhold or 
suspend all or any part of the quota under this Act of such nation, 

*7 U.S.C. I11B8. 

(240) 



241 

and either in addition or as an alternative, the President may, under 
such terms and conditions as he may prescribe, cause to be levied and 
collected at the port of entry an impost on any or all sugar sought to 
be imported into the United States from such nation in an amount not 
to exceed $20 per ton, such moneys to be covered into the Treasury of 
the United States into a special trust fund, and he shall use such fund 
to make payment of claims arising on or after January 1, 1961, as a 
result of such nationalization, expropriation, or other type seizure or 
action set forth herein, except that if such nation participates in the 
quota for the West Indies, the President may suspend a portion of 
the quota for the West Indies which is not in excess of the quantity 
imported from that nation during the preceding year, until he is satis- 
fied that appropriate steps are being taken, and either in addition or 
as an alternative he may cause to be levied and collected an impost in 
an amount not to exceed $20 per ton on any or all sugar sought to be 
imported into the United St ates from such nation for the payment of 
claims as provided herein. Any quantity so withheld or suspended shall 
be allocated under section 202(d) (1) (B) of this Act. With respect to 
any action taken during 1961 in any of the categories set forth in this 
subsection, the provisions of this subsection relating to levying and 
collecting an impost shall apply only if the President so determines. 



h. Fishermen's Protective Act of 1967, as amended 



Note. — Section 5 of the Fishermen's Protective Act of 1967, 
as amended, concerns tlie withholding^ of forci<^n assistance funds 
from forei<^i countries because of seizure of a United States ves- 
sel. For text of the Act, see Vol. II, pa<;e 472. 

(242) 



i. Emergency Security Assistance Act of 1973 

Public Law 93-199 [H.R. 11088], 87 Stat. 836, approved December 26, 1973 

AN ACT To provide emergency assistance authorizations for Israel and 

Cambodia. 

Be it endcted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Emergency Security Assistance Act of 1973". 

Sec. 2.1 In addition to such amounts as may be otherwise authorized 
to be appropriated to the President for security assistance for the 
fiscal year 1974, there are hereby authorized to be appropriated to the 
President not to exceed $2,200,000,000 for emergency military assist- 
ance or foreign military sales credits, or for both as the President 
may determine, for Israel, of which sum amounts in excess of 
$1,500,000,000 may be used pursuant to this section or section 4 of 
this Act only if the President (1) determines it to be important to our 
national interest that Israel receive assistance hereunder exceeding 
$1,500,000,000, and (2) reports to Congress each such determination 
(if more than one) at least twenty days prior to date on which 
funds are obligated or expended under this Act in excess of such 
$1,500,000,000 limitation. The twenty-day requirement contained in 
the preceding sentence shall not apply if liostilities are renewed in the 
Middle East. The President shall include in his report the amount of 
funds to be used pursuant to the determination, the terms of the addi- 
tional assistance under section 2 or section 4, and the justification for 
the determination. All infoimation contained in the justification shall 
be public information except to the extent that the President concludes 
that i)ublication would be incompatible with the security interests of 
the United States. 

Sec. 3. Military assistance furnished out of funds appropriated 
under section 2 of this Act shall be furnished in accordance with all of 
the provisions applicable to military assistance under the Foreign 
Assistance Act of 1901 (75 Slat. 424; Public L.aw 87-195), as amended. 
Foreign military sales credits extended to Israel out of such funds 
shall be provided on such terms and conditions as the President may 
determine and without regard to the provisions of the Foreign Mili- 
tary Sales Act (82 Stat. 1320; Public Law 90-029), as amended. 

1 FA Appropriation Act, 1974 : "$2,200,000,000 : Provided, That the funds appropriated 
In this paragraph shall be available only upon enactment Into law of authorizing legisla- 
tion : Provided further. That any part of any funds appropriated in this paragraph used to 
furnish military assistance shall be accounted for in accordance with section 108 of the 
Mutual Security Appropriation Act, 1956 (69 Stat. 438), as amended: Provided further. 
That of the funds appropriated under this paragraph, not more than $1,500,000,000 may be 
available for grant military assistance : Provided furtherj That none of the funds appro- 
priated in this paragraph in excess of $1,700,000,000 shall be obligated unless the Presi- 
dent determines such obligations will be in the national interest and provides Congress 
with detailed Justifications and notification ten days prior to any such obligation of funds." 

The FA Appropriation Act, 1974 requires 10 days notification prior to any such obliga- 
tion of funds. 

(243) 



244 

Sec. 4. At any time prior to June 30, 1974, the President is hereby 
authorized, within the limits of funds appropriated under section 2 
of this Act for Israel, to release Israel from its contractual liability 
to pay for defense articles and defense services purchased or financed 
under the said Foreign Military Sales Act or under this Act during 
the period beginning October 6, 1978, and ending June 30, 1974, and 
such funds shall bo used to reimbui*se current applicable appropria- 
tions, funds, and accounts of the Department of Defense for the value 
of such defense articles and defense services. 

Sec. 5. The Secretary of Defense shall conduct a study of the 1973 
Arab-Tsraoli conflict to nsrortain the efFoctivonoss of the foreign mili- 
tary assistance program as it relates to the Middle East conflict, 
including weapons that the United States is providing to Israel 
through foreign assistance programs, and to compare them to the 
effectiveness of the weapons which the Soviet Union is providing to 
the Arab States. In conducting such study and submitting such report, 
the Secretary shall take care not to disclose, directly or indirectly, 
intelligence sources or methods or confidential information received 
from any other nation. A report of the conclusions of such study 
shall be submitted to the Congress as soon as practical and in any case 
not later than December 31, 1974. 

Sec. 6. Of the funds appropriated pursuant to section 2, the Presi- 
dent may use such sums as may be necessary from time to time for 
payment by the United States of its share of the expenses of the United 
Nations Emergency Force in the Middle East, as apportioned by the 
United Nations in accordance with article 17 of the United Nations 
Charter. 



Note: On March 1, 1974, the President signed the following Memorandum (3U 
F.U. 10417. March 20. 1974) : 

DELEGATION OF FUNCTIONS AND ALLOCATION OP FUNDS RELATED TO 
EMERGENCY SECURITY ASSISTANCE FOR ISRAEL 

Memorandum for the Secretary of State, the Secretary of Defense 

THE WHITB HonSB, 

WoMhington, March 1, 19H. 
You are hereby designated and empowered to exercise the following functions 
rested In the President by Public Law 93-199, the Emergency Security Assistance 
Act of 1973, without the approval, ratification, or other action of the President. 
Functions not expressly delegated herein are reserved to the President. 

1. Functions delegated to the Secretary of State : 

(a) the function of reporting to the Congress any determination made by 
the President under Section 2 of the Act ; 

(b) the function conferred in Section 6 of the Act. 

2. Functions delegated to the Secretary of Defense : 

the function of providing military assistance or foreign military sales 

credits as determined by the President. 
Pursuant to the authority contained in Public Law 93-240, the Foreign Assistance 
and Related Programs Appropriation Act, 1974, I hereby allocate from tlie appropri- 
ation for "Emergency Security Assistance for Israel" to the Secretary of Defense, 
$2,200,000,000.00. This allocation is subject to the limitations imposed by the pro- 
visos in the provision appropriating these funds and subject to apportionment of the 
necessary funds by the Onice of Management and Budget. I direct the Secretary of 
Defense to allocate to the Secretary of State such sums from the $2,200,000,000.00 
as may be necessary from time to time for payment by the United States of its share 
of the expenses of the United Nations Emergency Force In the Middle East, as 
anportlonod by the United Nations in accordance with article 17 of the United 
Nations Charter as nutlmrl^ed In Section 6 of Public Law 93-199, the Emergency 
Security Assistance Act of 1973. 

This memorandum shall be published in the Federal Register. 



j. Foreign Disaster Assistance Act of 1974 

Partial text ' of Public Law 93-333 [H.R. 12412], 88 Stat. 290, approved 

July 8, 1974 



Sec. 4.2 The Secretary of State sliall keep the appropriate commit- 
tees of Congress fully and currently informed of the ongoing status of 
any negotiations with any foreign government regarding tlie cancel- 
lation, renegotiation, rescheduling, or settlement of any debt owed to 
the United States by any such foreign government under the Foreign 
Assistance Act of 1961. The Secretary of State shall transmit to the 
Speaker of the House of Representatives, and to the chairman of the 
appropriate Senate committee, the text of any international agree- 
ment proposing a modification in the terms of such debt no less than 
thirty days prior to its entry into force, together with a detailed 
explanation of the interest of the United States in such modification. 

*NoTi: Sections 2 and 3 were amendments to the Forelsn Assistance Act Se« new 

Section 494 and Section 494A, as amended (p. 76). 
* 22 use 2395 note. 

(245) 



k. Amendments to Board for International Broadcasting Act of 

1973 

Partial Text of Public Law 94-104 [S. 2230], 89 Stat. 508, Approved October 6, 

1975 

AN ACT To nnthorize appropriations for the Board for International Broadcast- 
ing for fiscal year 197(5; and to promote improved relations between the United 
States. Greece, and Turkey, to assist in the solution of the refugee problem on 
Cyprus, and to otherwise strengthen the North Atlantic Alliance. 



Sec. 2. (a) (1) The Connrress rcafTinns the policy of the United States 
to seek to improve aiul harmonize relations among the allies of tJie 
United States and between the United States and its allies, in the inter- 
est of mutual defense and national security. Tn particular, the Con- 
p'ess reco£i^ni'/es the sjiecial contribution to the North Atlantic Alliance 
of Greece and Turkey by virtue of tlieir geojrraphic position on the 
southeastern flank of l^^uiope and is prepared to assist in the moderni- 
zation and stren<rthenin2^ of their respective armed forces. 

(2) The Congress further reaflii-ms the policy of the United States 
to alleviate the suffering of refugees and other victims of armed con- 
flict and to foster and promote international efforts to ameliorate the 
conditions which prevent such persons from resuming normal and pro- 
ductive lives. The Congress, therefore, calls upon the President to en- 
courage and to cooperate in tlie implementation of multilateral pro- 
grams, under the aus])ices of the Secretary General of the United 
Nations, the United Nations High Commissioner for Kefugees, or other 
appropriate international agencies, for the relief of and assistance to 
refugees and other persons disadvantaged by the hostilities on Cyprus 
pending a final settlement of the Cyprus refugee situation in the spirit 
of Security Council Resolution 361. 

(b) (1) In order that the purposes of this Act may be carried out 
without awaiting the enactment of foreign assistance legislation for 
fiscal year 1976 programs — 

(A) the President is authorized, notwithstanding section 620 
of the Foreign Assistance Act of 1961, to furnish to the Govern- 
ment of Turkey those defense articles and defense services with 
respect to which contracts of sale were signed under section 21 
of section 22 of the Foreign Military Sales Act on or before Feb- 
ruary 5, 1975, and to issue licenses for the transportation to the 
Government of Turkey of arms, ammunition, and implements of 
war (including technical data relating thereto) : Provided^ That 
such authorization shall be effective only while Turkey shall 
observe the cease-fire and shall neither increase its forces on 
Cyprus nor transfer to Cyprus any United States supplied imple- 
ments of war: Provided further^ That the authorities contained 
in this section shall not become effective unless and until the 
President determines and certifies to the Congress that the f uniish- 

(246) 



247 

ing of defense articles and defense services, and the issuance of 
licenses for the trajisportation of implements of war, arms and 
ammunition under this section are important to the national secu- 
rity interests of the United States ; and 

(B) the President is requested to initiate discussions with the 
Government of Greece to determine the most urgent needs of 
Greece for economic and military assistance. 

(C) the President is requested to initiate discussions with the 
Government of Turkey concerning effective means of preventing 
the diversion of opium poppy into illicit channels. 

(2) The President is directed to submit to the Speaker of the House 
of Representatives and to the Foreign Relations and Appropriations 
Committee of the Senate within sixty days after the enactment of this 
Act a report on discussions conducted under subsections (b) (1) (B) 
and (C), together with his recommendations for economic and mili- 
tarv assistance to Greece for the fiscal year 1976. 

(c)(1) Section 620(x) of the Foreign Assistance Act of 1961 is 
amended by striking out all after the word "' Provided ^^'' and inserting 
in lieu thereof the following: "That the President is authorized to 
suspend the provisions of this section and of section 3(c) of the Foreign 
Military Sales Act only with respect to sales, credits, and guaranties 
under the Foreign Military Sales Act, as amended, for the procure- 
ment of such defense articles and defense services as the President 
determines and certifies to the Congress are necessary in order to 
enable Turkey to fulfill her defense responsibilities as a member of 
the North Atlantic Treaty Organization. Any such suspension shall 
be elTective only while Turkey shall observe the cease-fire and shall 
neither increase its forces on Cyprus nor transfer to Cyprus any United 
States supplied arms, ammunition, and implements of war.". 

(2) Section 620 (x) of the Foreign Assistance Act of 1961 is further 
amended by designating the present subsection as paragraph (1) and 
by adding at the end thereof the following new paragraph : 

"(2) The President shall submit to the Congress within sixty days 
after the enactment of this paragraph, and at the end of each succeed- 
ing sixty-day period, a report on progress made during such period 
toward the conclusion of a negotiated solution of the Cyprus conflict.". 

(3) Nothing in this section shall be construed as authorizing (A) 
military assistance to Turkey under chapter 2 of part II of the Foreign 
Assistance Act of 1961, or (B) sales, credits, or guaranties to or on 
behalf of Turkey under the Foreign Military Sales Act for the pro- 
curement of defense articles or defense services not detennined by the 
President to be needed for the fulfillment of Turkey's North Atlantic 
Treaty Organization responsibilities. 

(4) Pursuant to the provisions of this section, in the case of any 
letter of oiler to sell anv defense article or defense service pursuant to 
the Foreign Military Sales Act for $25,000,000 or more, the President 
shall submit to the Speaker of the House of Representatives and to the 
chairman of the Committee on Foreign Relations of the Senate a 
statement containing (A) a brief description of the defense article or 
defense service to be offered, (B) the dollar amount of the proposed 
sale, (C) the United States Armed Force which is making the sale, and 
(D) the date on which any letter of offer to sell is to be issued. The 
letter of offer shall not be issued if the Congress, within twenty calen- 
dar days after receiving any such statement, adopts a concurrent resolu- 
tion stating in effect that it objects to such proposed sale. 



248 

(5) This subsection sliall become effective only upon enactment of 
foreign assistance legislation authorizing sales, creilits, and guaran- 
ties under the Foreign Military Sales Act for fiscal year 1976.* 

^ Such authorization became effective upon enactment of the International Security Assist- 
ance and Arms Export Control Act of 1976, Public Law 94-329. approved June 30, 1976. 



4. Executive Orders and Delegations of Authority Relating to 

Foreign Assistance 

a. Executive Order 10973, as amended 

Executive Order 10973, November 3, 1961, 26 F.R. 10469, 3 CFR, 1959-63 Comp., 
p. 493, as amended by Executive Order 11261, December 11, 1965, 30 F.R. 
15397, 3 CFR, 1^65 Supp., p. 194 ; Executive Order 11417, July 26, 1988, 33 F.R. 
10625, 3 CFR, 1960-70 Comp., p. 736; Executive Order 11432, October 24, 1968, 
33 F.R. 15701, 3 CFR 1966-70 Comp. p. 751; Executive Order 11685, Septem- 
l>^^ 07 T070 py FR^ ooif^i^. FvA-ut-e Order 11841. F<>b-uary 28. 1975, 40 F.R. 
8933; and Executive Order 11959, January 18, 1977, 42 F.R. 4315. 

Administration of Foreign Assistance and Related Functions 

By virtue of the authority vested in me by the Foreign Assistance 
Act of 1961 (75 Stat. 424) arid section 301 of title 3 of the United States 
Code, and as President of the United States, it is hereby ordered as 
follows : 

Part I. Department of State 

Sec. 101. Delegation of Functions. Exclusive of the functions 
otherwise delegated, or reserved to the President, by the provisions of 
this order, and subject to the provisions of this order, there are hereby 
delegated to the Secretary of State (hereafter in this Part referred to 
as the Secretary) all functions conferred upon the President by (1) 
the Act (as defined in Part VI hereof), (2) the Act to provide for 
assistance in the development of Latin America and in the reconstruc- 
tion of Chile, and for other purposes ^ (74 Stat. 869; 22 U.S.C. 1942 
et seq.), (3) the Mutual Defense Assistance Control Act of 1951 ^ 
(65 Stat. 644; 22 U.S.C. 1611 et seq.), (4) the unrepealed provisions 
of the Mutual Security Act of 1954 ^ (68 Stat. 832; 22 U.S.C. 1750 
etseq.), (5)^ section 8(d) of the Act of January 12, 1971 (P.L. 91-672; 
84 Stat. 2055), (6) sections 413(b) and 607 of the International Se- 
curity Assistance and Arms Export Control Act of 1976 (90 Stat. 
761, 768; 22 U.S.C. 2431, note 2394a), and (7)^ those provisions of 
acts appropriating funds under the authority of the Act which relate 
to the Act. 

Sec. 102. Agency for International De\t:lopment. (a) The Secre- 
tary shall establish an agency in the Department of State to be known 
as the Agency for International Development (hereafter in this Part 
referred to as the Agency) . 

1 For text, see papre 223. 

2 For text, see page 231. 

3 For text, see page 227. 

*Paragranh 1 of Executive Order 11685 redesignated clause (5) as clause (6). and 
added a new clause (^^). 

s Sec. 1 of Executive Order 11959 redesignated clause (6) as clause (7), and added 
a new clause (6). 

(249) 



20-818 O - 78 



250 

(b)^ The Agency shall be headed by an Administrator who shall be 
appointed pursuant to section 624(a) of the Act. 

(c)* The officers provided for in section 624(a) of the Act shall also 
serve in the Agency. 

Sec. 103. [Revoked — 1972]." Continuation of Prior Agencies. — 

Sec. 104. Special Missions and Staffs Abroad. The maintenance of 
special missions or staffs abroad, the fixing of the ranks of the chiefs 
thereof after the chiefs of the United States diplomatic missions, and 
the authorization of the same compensation and allowances as the chief 
of mission, class 3 and class 4, within the meaning of the Foreign Serv- 
ice Act of 1946 ^ (60 Stat. 999 ; 22 U.S.C. 801 et seq.) , all under section 
631 of the Act, shall be subject to the approval of the Secretary. 

Sec. 105.® Allocation of Foreign Assistance. In carrying out the 
functions conferred upon the President by Section 653 of the Act, 
the Secretary' of State shall consult with the Director of the Office of 
Management and Budget. 

Sec. 106. Office of Small Business. The Office of Small Business 
provided for in section 602(b) of the Act shall be in the Department 
of State. 

Part II. Department op Defense 

Sec. 201. Delegation of Functions. Subject to the provisions of 
this order, there are hereby delegated to the Secretary of Defense: 

(a) The functions conferred upon the President by Part II (except 
chapter 4 thereof) *° of the Act not otherwise delegated or reserved to 
the President. 

(b) To the extent that they relate to other functions under the Act 
administered bv the Department of Defense, the functions conferred 
upon the President bv sections 602(a), 605(a), 625(a), 625(h), 627, 
628, 63Ha), 634(b), 635(b), and 635(d) of the Act. 

(c) [Revoked— 1977]." 

(d) The functions conferred upon the President by the fourth and 
fifth provisos of section 108 of the Mutual Security Appropriation Act, 
1956 (69 Stat. 438). 

Sec. 202.^= Peports and Ixformatiox. In carrying out the functions 

« S-ibsectlons (b) and (c). which were amended by para. 2 of Executive Order 11G85. 
formerly read as follows : 

"(b) The Apencv s>inll b** bended b^ an Administrator who shall be the officer provided 
for in section 624(a)(1) of the Act. Nothlnjr In this order shall be construed as affecting 
the ten'ire of t'^e said Administrator now In offire 

"(c) The officers provided for In sections 624(a)(2) and 624(a)(3) of the Act shall 
serve in the Apencv." 

'Pnrn. 3 of Executive Order 11685 revoked section 103. which read as follows: "The 
corporate Developn^ent lA)nn Fund, f'e International Cooperation Administration, and the 
Offire of the Inspector Ceneral and Comptroller shall continue in existence until the end 
of November 3. 1961. The personnel, offices, entitles, property, records, and funds of such 
ajrencies and office may be utilized by the Secretary prior to abolition of such agencies 
and office." 

^ For text, see pace 500. 

» Sec 2 of Exe'-utlvp Or'^er IIOS'^ revt)Ved Sec. 105 and substituted the present language 
In lieu thereof. Sec. 105 formerlv read as follows : 

"Sec. 105. Munitions Control. In carrying out the functions conferred upon the Presi- 
dent by '-ectlon 414 o^ t)ie Mutual Securltv .Art of 1054. the Secretary shall consult with 
ariprop'rlate agenrles. Peslcnatlons. Including changes in designations, by the Secretary of 
article:* wMch shall be considered as arms, ammunition, and implements of wnr. includ- 
ing technical data relating thereto, under that section shall have the concurrence of the 
Se^ret'^ry of Def prise." 

"The words "(except chapter 4 thereof)" were added by para. 4 of Executive Order 
1168rv 

^1 Sec. 3 of Executive Order 11959 revoked Snb'^ectlon (c) which formerly read as 
follows: "(p) The function conferred upon the President bv Section 644(1) of the Act." 

"Sec. 4 of Executive Order 119.^9 amended Sec. 202 which formerly read ns follows: 

"Sep. 202. Kfport<; .*np Inform 'Tton. In carrving out the functions under section 
6.34(b) of the Act deler^ted to him by the provisions of section 201(b) of this order, the 
Secretary of Defense shall consult with the Secretary of state." 



251 

under sections 514(e) and 634(b) of the Act delegated to him by sec- 
tion 201 of this order, the Secretary of Defense shall consult with the 
Secretary of State. 

Sec. 203." Exclusions From Delegation to Secretary of Defense. 
The following described functions conferred upon the President by 
the Act are excluded from the functions delegated by the provisions 
of section 201(a) of this order: 

(a) Those under section 502(B) (a) (3) of the Act, except to the ex- 
tent they relate to functions under the Act administered by the Depart- 
ment of Defense. 

(b) Those undersections 504(a), 505(a) relating to other provisions 
required by the President, and 505 (d) . (e) , and (g) of the Act. 

(c) Those relating to consent under sections 505(a) (1) and (4) of 
the Act. 

(d) Those under sections 505(b) (1), (2), and (3) of the Act to the 
extent that they pertain to countries which agree to the conditions set 
forth therein. 

(e) Those of negotiating, concluding and terminating international 
agreements. 

Part III. Other Agencies 

Sec. 301.^* Department of the Treasury. There are delegated to 
the Secretary of the Treasury the functions conferred upon the Presi- 
dent by the third sentence of section 102(d) as it relates to inter- 
national development organizations in which the United States is 
represented by the Secretary of the Treasury, section 301(e) (3) as it 
relates to organizations referred to in section 301(e) (2), the second 
sentence of section 612(a). section 634(f), and section 634(fr) of the 
Act. The Secretnry of the Treasury shall continue to administer any 
open special foroiprn country accounts established pursuntit to former 
section 514 of the Vet as e^ncted b^' section 201 ff) of Public Law 
92-226 (m Stat. 25) nnd repealed by Section 12(b) (5) of Public Law 
93-180 (8" Stat. 722). 

SEr. 302. Det^mtt^ient of r'o:M:MF.RCE ThcT-o is hereby delegated to 
the Secretary of Commerce so much of the functions conferred upon 



" !5eo. ^ of FTprn<iA-e O'-'^pr llOfiO amenr'ed Sec. 203 which ^^ormerlv ren^l as follows: 

"Sec. 203. Exclustoxs From Delegattox to Secretary of Defense. The following- 
de«5crlher! functions conforrerl upon the President by the Act are excluded from the functions 
delejjnted hy the nro-'Ms'ons of section 201 Ci ) of this o'-dcr : 

"(n) Those under section SO.*! (a) (Introductorv clause) of the Act. 

"(b) Those under ser^tlons 50o(b) (1), (2). and (3) of the Act to the extent that they 
pertain to oonntries ^•'I'ch agree to he conditions set forth therein. 

"(c) FRevoked — 19721. 

"fd> fT^Pvokod — 10701 

"(e) Those of negotiating, concluding, and terminating international agreements. 

"(f) Those under section 514 of the Act." 

"Sec. 6 of Executive Order 11959 amended Sec. 301 Avhich formerly read as follows: 

"Sec. 301. Dep.\rtment of the TRE.\suRy. There are hereby delegated to the Secretary 
of the Treasury : 

"(a) The functions conferred upon the President by subsections (a)(2) and (b) of 
section 514 of the Act. by the .^econd sentence of section 612(a) of the Act, and by sub- 
sections (f) and (g) of sec. (lA of the Act. 

"(b) So much of the functions conferred upon the President by Section 414 of the 
Mutual Security Act of 19r)4. a.s amended, as relate to control of the Import of arms, 
ammunition and Implemenls of war, includinfr data relating thereto. In carrjlng out such 
functions tlie Secretary of the Treasury sliall con.sult with appropriate agencies and on 
matters affecting world peace, the external security and foreign policy of tlie United 
States he shall be guided by the views of tiie h'ecretary of State. Designations, including 
change.^ in designations, of articles subject lo import control under Section 414 shall have 
the concurrence of t!ie Seoret-ry of Stale and the Secretary of Defense. 

"(c) In carrying out the functions under section 514 of the Act delegated to him by 
this order, the Secretary of the Treasury shall consult with the Secretary of State." 



252 

the President by section 601(b) (1) of the Act as consists of drawing 
the attention of pnv ate enteipnt^e to opportunities lor investment and 
development in lebs developed friendly couniiies and areas. 

8ec. '60'6. Civil Service Commission. Ihere is hereby delegated to 
the Chairman of the Civil Service Commission the function of pre- 
scribing regulations conferred upon the rresident by the proviso con- 
tained in section ()-2r)(b) of the Act. ^^ ' • 1 

Sec. 301. United Statos Information Agency.'^ (a) The United 
States Information Agency shall perform all public information func- 
tions abroad with respect to the foreign assistance, aid, and develop- 
ment programs of the United States Government. 

(b) There are hereby delegated to the Director of the United States 
Information Agency the functions conferred upon the l^resident by 
sections '2'21 and 2*22 of the Act to the extent that those functions relate 
to informational media guaranties authorized by section 1011 of the 
United States Information and Educational Exchange Act of 1948 
(G8 Stat. 8()2), as amended.'" 

Sec. 305. I)EVf:u)i»MENT I^mn Commitiee. There is hereby estab- 
lished a Development Loan Connnittee in accordance with section 204 
of the Act. The Committee shall consist of the Administrator of the 
Agency for Inteinational Deve]()i)ment, who shall be chairman, the 
Chairman of the Board of Directors of the Export-Import Bank of 
Washington, the Assistant Secretai-y of State for Economic Affairs, 
the Assistant Secretary of the Treasury dealing with international 
finance, the Assistant Secretary of Commerce for Domestic and Inter- 
national Business,^' and the officer of tlie Agency for International 
Development dealing with development financing. 

Sec. 806.^^ DEVELorMENT Coordination Committee, (a) In accord- 
ance with section ()40B of the act, there is hereby established a De- 
velopment (Coordination Committee (hereinafter referred to as the 
Committee). The Committee shall consist of the Administrator of 
the Agency for International Development, who shall be Chairman; 
the Under Secretary of State for Economic Affairs; the Under Sec- 
retaiy of the Treasury for ^fonetaiv Affaiis; the Under Secretary 
of CoinmeTce: the Under Secietary of Ajrriculture; the Under Secre- 
tary of Labor; the Special Kepresentative for Trade Negotiations; 
an Associate Director of the Office of Management and Budget; the 
Executive Dii'ector of the Council on International Economic Policy; 
a representative of the Assistant to the President for national affairs; 
the President of the Export-Import Bank of the United States; and 
the President of the Overseas Private Investment Corporation. 

(b) Whenever matters w^ithin the jurisdiction of the Committee may 
be of interest to Federal agencies not represented on the Committee 
under paragraph (a) of this section, the Chairman of the Committee 
may consult with such agencies and may invite them to designate 
representatives to participate in meetings and deliberations of the 
Committee. 



15 Executive Order 11261 amended section 304 by submitting: this language. Section 
304 formerly read as follows : "The United States Information Agency shall perform all 
public-information functions abroad with respect to the foreign assistance, aid, and 
development programs of the I'nited States Government." 

16 T^or text see page 092. 

1'^ The words "the Assistant Secretary of Commerce for Domestic and International Busi- 
ness," were added bv Executive Order 11417. 33 F.R. 10625. July 26, 1968. 
18 Sec. 306 was added Executive Order No. 11841, February 26, 1975. 



253 

(c) Under the foreign policy guidance of the Secretary of State, the 
Committee shall advise the President with respect to coordination of 
United States policies and programs affecting the development of the 
developing countries, including programs of bilateral and multilateral 
development assistance. 

(d) All agencies and officers of the Government shall keep the Com- 
mittee informed in necessary detail as to the policies, programs, and 
activities referred to in paragraph (c) of this Section. 

(c) Nothing herein shall be deemed to derogate from the responsi- 
bilities of the Secretary of State, the Secretary of the Treasury, or 
from responsibilities vested elsewhere by law or other Executive 
orders. 

Part IV. Reserved Functions 

Sec. 401. Reservation of Functions to the President. There are 
hereby excluded from the functions delegated by the foregoing provi- 
sions of this order : 

(a) The functions conferred upon the President by sections 504(b), 
505(c)/^ 613(a), 614(a). 620(a), 620(d), 620(x), 620.V« 621(a), 622 
(b), 62-^(c), 633(a), 633(b), 662(a), and 663(b)2« of the Act. 

(b) The functions conferred upon the Presdent by the Act and 
section 408(b) by the Mutual Security Act of 1954 ^^ with respect to 
the appointment of officers required to be appointed by and with the 
advice and consent of the Senate and with respect to the appointment 
of officers pursuant to section 624(c) of the Act and the function so 
conferred by section 204 of the Act of assigning officers to the Devel- 
opment Loan Committee. 

(c) The functions conferred upon the President with respect to de- 
terminations, certifications, directives, or transfers of funds, as the 
case mav bo, bv sections 202(b), 205. 303, 481(a), 504(a) (6),^- 505(b) 
(4), 505(d) (2) (A), 505(d) (3)," 506(a), 604(a), 610, 614(c), 624(d) 
(7), 632(b), 634(c), 633(a) and 669(b) (1)^^ of the Act." 

(d) The following-described functions conferred upon the Presi- 
dent : 

(1)2* Those under section 503(a) which relate to findings: Pro- 
vided^ That the Secretary of State in the implementation of Sie func- 
tions delegated to him under section 505(a)(1), (a)(4) and (e) of 
the Act, is authorized to find, in the case of a proposed transfer of a 
defense article or related training or a related defense service by a 
foreign country or international organization to a foreign country or 
international organization not otherwise eligible under section 503(a) 
of the Act, whether the proposed transfer will strengthen the security 
of the United States and promote world peace. 

>8Sec. 7(a) of Executive Order l]9o9 added "505(e)" and "620(x). 620A". 

=»Sec. 7(a) of Executive Order 11959 struck out "and 633(b)" and substituted in lieu 
thereof "6'33(b). 662(a). and 663(b)". 

^ For text, see page 227. 

^2?ec. 7(b) of Fxecntive Order 119.'9 struck out "481." and su'-stitnted in He-i tliereof 
"481(a), 504(a)(6)". Sec. 7(b) also added "505(d)(2)(A), 505(d)(3)" and "663(a) and 
669(b) ( 1 ) ". 

*» Except for the amendments noted in footnote 22, Para. 7(b) of Executive order 
11685 inserted the lanpruaee to this point beginninff with "202(b)", in lieu of "202(b), 
205, 303, o06(b)(4), 510(a), 604(a), 610, 614(c), 624(e)(7), 632(b), 634(c), and 
643(d) of the Act." 

2* Sec. 7(c) of Executive Order 11959 amended Subsection (d)(1) which formerly read 
as follows: "(1) Those under section 503 with respect to findings." 



254 

(2) Those under sections 505(b) (1), (2), and (3)" in respect of 
countries whicli do not agree to the conditions set forth therein. 

(3) (Revoked 1972). ^^ 

(4) That under section 614(b) with respect to determining any 
provisions of law to be disregarded to achieve tlie purpose of that 
section. 

(5)" That under the second sentence of section 654(c) with respect 
to the publication in the Federal Register of any finding or determina- 
tion reserved to the President: Provided, that any officer to whom 
there is delegated the function of making any finding or determina- 
tion within the purview of section 654(a) is also authorized to reach 
the conclusion specified in the second sentence of section 654(c) in 
l^erformance of the function delegated to him. 

(e) Those with respect to dotcrmininations under sections 103(b) 
(first Proviso), 104 ajid 203 of the Mutual Defense Assistance Con- 
trol Act of 1951.28 

(f) That under section 523(d) of the Mutual Security Act of 
1954.2« 

(g)^° Those under sectitm 502 of the Foreign Assistance and Re- 
lated Programs Appr()i)riation Act, 1972 (86 Stat. 55), with respect to 
certification. 

Part V. Funds 

Sec. 501. Allocatiox of Funds. Funds appropriated or otl erwise 
made available to the President for carrying out the Act shall be 
deemed to bo allocated without any furtlier action of the President, 
as follows: 

(a) There are allocated to the Secretary of State all funds made 
available for carrying out tlio Act except those made available for 
carrying out Part II of the Act. 

(b) There are allocated to the Secretary of Defense funds made 
available for carrying out Part II of the Act. 

Sec. 502. Reallocation of Pounds. The Secretary of State and the 
Secretary of Defense may allocate or transfer as appropriate any 
funds received under subsections (a) and (b), respectively, of section 
501 of this order, to any agency, or part thereof, for obligation or 
expenditure thereby consistent with applicable law. 

Part VI. General Provisions 

Sec. 601. Definitions, (a) As used in this order, the words "the 
Act" mean the Foreign Assistance Act of 1961, as amended,^^ exclu- 
sive of Part IV thereof. 



25 Para. 7(c) of Executive Order 11685 substituted "505(b) (1), (2). and (3)" in lieu 
of '50G(b) (1), (2), and (3)". 

2« Subsection (d)(3) was revoked by para. 7(d) of Executive Order 11685. It read as 
follows : "(3) Those under section 511 (b). except the functions of determining that Internal 
security requirements may be the basis for procrrams of military assistance in the form of 
defense services and reporting any such determination." 

^ Subsection (d) (5) was added by para. 7(e) of Executive Order 11685. 

28 For text, see page 232. 

29 For text, see page 230. 

^ Subsection (g) was amended by para. 7(f) of Executive Order 11685. It formerly read 
as follows: "(g) Those under section 107 of the Foreign Assistance and Related Agencies 
Appropriation Act, 1962 (75 Stat. 717), and those with respect to determination and 
certification under sections 109 and 602. respecti' ely. of that Act." 

^ Para. 8 of Executive Order 116S5 added the words ", amended." 



255 

(b) As used in this order, the word "function"' or "functions"' in- 
cludes any duty, obligation, power, authority, responsibility, right, 
privilege, discretion, or activity. 

Sec. 602. Ixcidextal Transfers, (a) Effective at the end of No- 
vember 3, 1961, all offices, entities, property, and records of the corpo- 
rate Development Loan Fund, not otherwise disposed of by the Act 
are hereby transferred to the Department of State. 

(b) So much of the records of the Export-Import Bank of Wash- 
ington as the Director of the Bureau of the Budget sliall determine to 
be necessary for the purposes of section 621(e) of the Act shall be 
transferred to the Department of State. 

Sec. 603. Persoxxel. (a) In carrying out the functions conferred 
upon the President by the provisions of section 625(d) (1) of the Act, 
and by this order delegated to the Secretary of State, the Secretary 
shall authorize such of the agencies which administer programs under 
the Act as he may deem appropriate to perform any of the functions 
under section 625(d) (1) of the Act to the extent that the said func- 
tions relate to the programs administered by the respective agencies. 

(b) Persons appointed, employed, or assigned alter May 19, 1959, 
under section 527(c) of the Slutual Security Act of 1954 or section 
625(d) of the Act for the purpose of performing functions under such 
Acts outside the United States shall not, unless otherwise agreed by 
the agency in which such benelits niay be exercised, be entitled to the 
benefits provided by section 528 of the Foreign Service Act of 1946 ^^ 
in cases in which their service under the appointment, employment, 
or assignment exceeds thirty months. 

Sec. 604. Referexces to Orders and Acts. Except as may for any 
reason be inappropriate : 

(a) References in this order or in any other Executive order to (1) 
the Foreign Assistance Act of 1961 (including references herein to 
"the Act"), (2) unrepealed provisions of the Mutual Security Act of 
1954,^^ (3) any other act which relates to the subject of this order, or 
(4) any provisions of any thereof shall be deemed to include references 
thereto, respectively, as amended from time to time. 

(b) References in any prior Executive order to the Mutual Security 
Act of 1954 or any provisions thereof shall be deemed to be references 
to the Act or the corresponding provision, if any, thereof. 

(c) References in this order to provisions of any appropriation Act, 
and references in any other Executive order to provisions of any ap- 
propriation Act related to the subject of this order, shall be deemed to 
include references to any hereafter-enacted provisions of law which 
are the same or substantially the same as such appropriation Act pro- 
visions, respectively. 

(d) References in this order or in any other Executive order to this 
order or to any provision thereof shall be deemed to include references 
thereto, respectively, as amended from time to time. 

(e) References in any prior Executive order not superseded by this 
order to any provisions of any Executive order so superseded shall 
hereafter be deemed to be references to the corresponding provisions, 
if any, of this order. 



■^ For text, see page 522. 
^"^ For text, see page 227. 



256 

(f)^* In conformity with section 202(b) of the Act of February 7, 
1972 (Public Law 92-226; 86 Stat. 27), references in this order to 
Part I of the Act shall be deemed to include also chapter 4 of Part II 
of the Act, and references in this order to Part II of the Act shall be 
deemed to exclude chapter 4 of Part II of the Act. 

Sec. 605. Sup?:rseded Orders. The following are hereby superseded : 

(a) Executive Order No. 10893 of November 8, 1960 (25 F.R. 10731), 
except Part II thereof and except for the purposes of using funds 
pursuant to section 643(c) of the Act.^^ 

(b) Section 2 of Executive Order No. 10915 of January 24, 1961 ^« 
(26 F.R. 781). 

(c) Executive Order No. 10955 of July 31, 1961 (26 F.R. 6967). 
Se(^, 606. Saving Provisions. Except to the extent tliat they may be 

inconsistent with this order, all determinations, authorizations, regu- 
lations, ruling, certificates, orders, directives, contracts, agreements, 
and other actions made, issued, or entered into with respect to any 
function aifected by this order and not revoked, superseded, or other- 
wise made inapplicable before the date of this order, shall continue 
in full force and effect until amended, modified, or terminated by 
appropriate authority. 

Sec. 607. Effective Date. The provisions of this order shall become 
effective as of September 30, 1961. 

John F. Kennedy. 

The White House, November 3. 1961. 



»* Subsection (f ) was added by para. 9 of Executive Order 11685. 
» Part II of Executive Order lOSliQ reads as follows : 

"Part H. COORDINATION AND SUPERVISION OF FUNCTIONS ABROAD 

"SECT" ON 201. Functions of Chiefs of United States Diplcmatic Missions. The several 
Chiefs of the United States Diplomatic Missions in foreign countries, as the representa- 
tives of the 1 resl(.ent and acting on his Le.ialf. shall have exercise, to the extent 
permitted by law and in accordance with such instructions as the President may from 
time to time promulRate, affirmative responsibility for the coordination and supervision 
over t'le f'arrvlnc o'lt hv airencles of their functions in the respective countries." 

^ Executive Order No. 10915 was amended by Executive Order No. 10973 of Novem- 
ber 3, 1961 (26 F.R. 10469, 3 CFR, 1950-1963 comp., p. 232). 



b. State Department Delegation of Authority No. 104, 

as amended 

State Department Delegation of Authority No. 104, November 3, 1961 [26 F.R. 
10608], as amended by Delegation of Authority 104-1, April 10, 1962 [27 F.R. 
3701], Delegation of Authority 104-A, September 26, 1962 [27 F.R. 9925], 
Delegation of Authority 104-2, December 18, 1962 [28 F.R. 530], Delega- 
tion of Authority 104-3, July 1, 1963 [28 F.R. 7231], Delegation of Authority 
104-4, March 4, 1964 [29 F.R. 3443], Delegation of Authority 104-5, June 3, 1965 
[30 F.R. 11110], Delegation of Authority 104-6, January 2, 1968 [33 F.R. 541], 
Delegation of Authority 104-7, February 5, 1970 [35 F.R. 3243], Delegation of 
Authority 104-8, October 2, 1972 [37 F.R. 21449-October 11, 1972], Delegation of 
Authority 104-9, November 16, 1973 [38 F.R. 34130-December 11, 1973], Dele- 
gation of Authority 104-10, January 29, 1974 [39 F.R. 4676-February 4, 1974], 
and Delegation of Authority 104-11, July 29, 1975 [40 F.R. 33740-August 11, 
1975] 

Foreign Assistance Act of 1961 and Certain Related Acts 

delegation of authority 

By virtue of the authority vested in me by the Foreign Assistance 
Act of 1961 (75 Stat. 424) (hereinafter referred to as the Act), the 
Executive Order of November 3, 1961, entitled "Administration of 
Foreign Assistance and Related Functions'' (hereinafter referred to 
as the Executive Order), the Foreign Military Sales Act (82 Stat. 
1320), the Executive Order of December 22, 1969, entitled, "Adminis- 
tration of Foreign Military Sales''^ Executive Order No. 10900, and 
section 4 of the Act of May 26, 1949 (63 Stat. Ill), it is ordered as 
follows: 

Sec. 1. Establishment of the Agency for International De- 
velopment. 

(a) There is established in the Department of State an agency to 
be known as the Agency for International Development (hereinafter 
referred to as the Agency) which shall be headed by an Administrator 
(hereinafter referred to as the Administrator), as provided in section 
102 (b) of the Executive Order. 

(b) Effective on the date of abolition of the corporate Development 
Loan Fund and the International Cooperation Administration, the 
offices, entities, functions, property, records, and funds of the Inter- 
national Cooperation Administration, not otherwise disposed of by 
the Act, and the offices, entities, functions, property, and records of the 
corporate Development Loan Fund and the records of the Export- 
Import Bank of Washington transferred to the Department of State 

iThe words "the Porelfcn Mllltarv Sales Act (82 Stat. 1320), the Executive Order of 
Deceinbpr 22, 1969. entitled 'Administration of Foreign Military Sales'," were added by 
Sec. 1 of Delegation of Authority 104-7. 

(257) 



258 

by or pursuant to sections G02 (a) and (b) of tlie Executive Order shall 
be i)laced in the Agency. The personnel, offices, entities, property, 
record. . and funds of the corporate Development Loan Fund ami the 
International Cooperation Administration may be utilized by the Ad- 
min isiiator prior to the almlition of the corporate l)evolo])incnt Loan 
Fund and the International Cooperation Administration. The Office 
of Small Business shall l)e in the Agency. 

(c) The officers provided foi- in sections 024(a)(2) and 624(a)(3) 
of the Act shall exercise such functions as the Administrator deems ap- 
I)ropriate. Personnel of the International Cooperation Administra- 
tion and the corporate Development Loan Fund may be detailed to the 
Agency upon its establishment. On the date of abolition of the Inter- 
national Cooperation Administration and the corporate Development 
Loan Fund, such of the personnel of those a<?encies as the Administra- 
toi- shall deem necessary shall be transferred to the Aorency. 

(d) The Administrator is hereby designated elTective on the date of 
the abolition of the corporate Development I^an Fund as the officer to 
whom shall be transferred and (1) who shall accept the assets of, as- 
sume the obligations and liabilities of, and exercise the rights estab- 
lished or acquired for the benefit of, or with respect to, the corporate 
Development Ix)an Fund, and (2) who shall accept the assets, obliga- 
tions, liabilities of, and rights established or acquiied for the benefit of, 
or with lespect to, the Export- Import Bank of Washington which are 
referred to in section 621 (e) of the Act. 

(e) The Administrator is hereby designated effective on the date of 
the abolition of the corporate Development Ix)an Fund as the person 
to be sued in the event of default in tlie fidfillment of the obligations 
of the corporate Development Loan Fund, and in the event of default 
in the fulfillment of those obligations of the Export- Import Bank of 
Washington referred to in section 621 (e) of the Act. 

Sec. 2. Functions of ttie Administrator. 

(a) Exclusive of the functions otheiwise delegated or reserved to 
the Secretary of the State herein there arc hereby delegated lo the 
Administrator: 

(1) The functions conferred upon the Secretary of State by 
section 101 of the Executive Order. 

(2)* So nuich of the functions conferred upon the Secretary of 
State by section 622(c) of the Act as relates to continuous super- 
vision and general direction of programs under Part I of the Act, 
not including chapter 4 of Part II of the Act. 

(3)' The functions of negotiating, concluding, and terminating 
international agreements under the Act other than agreements re- 
lating to security assistance programs, and under the Latin Ameri- 
can Development Act,* subject to the concurrences required by 
the Department Circular 175 procedure. 

* Sec. 1(a) of Delegation of Authority 104-6 amended paragraph (2), which formerly 
read as follows: "The functions conferred upon the Secretary of State by section 622(c) 
of the Act, to be exercised In consnUation with the Under Secretary of State, the Under 
Secretary of State for Economic Affairs, and the Deputy Under Secretary of State for 
Political Affairs, as appropriate." Sec. 1(a) of Delegation of Authority 104-8 changed the 
period to n comma and added "not Including chapter 4 of F^art II of the Act." 

•See. Kb) of Delegation of Authority 104-8 amended paragraph (3) which formerly 
read as follows : "The fnncflons of negotiating, concluding, and terminatine international 
agreements under the Act and the Act to Provide for Assistance In the Development of 
Latin America and in the Reconstruction of Chile, and for Other Purposes, subject to the 
concurrences required hv Department Circular .N'o. 176." 

* For text, see page 223. 



259 

(4) Those functions referred to in section 605(a) of the Execu- 
tive Order with respect to the use of funds pursuant to secnoii 
643(c) of the Act which were conferred upon the Secretary of 
State and tJie corporate Development Loan Fund. 

(5)* The functions conferred upon the Secretary or Depart- 
ment of State by Executive Order 10900, exchisive of those so 
conferred by sections 3(a) and 3(b) (to the extent said functions 
relate to any functions under section 104 of the Agricultural 
Trade Development and Assistance Act of 1954 specifically re- 
served to the Secretary or Department of State by this paragraph 
or delegated to any other agency of the Government by Executive 
Order No. 10900), 3(b) (to tlie extent it relates to section 303 of 
said act), 4(d)(5), 4(d)(8) (to the extent it relates to sections 
104(h), 104(o) and 104(p) of the Agricultural Trade Develop- 
ment and Assistance Act of 1954), 4(d) (10), 4(d) (11), 4(d) (12), 
and 4(d) (14) of that order. The exercise by the Administrator 
of the functions conferred upon the Secretary by section 3(a) of 
Executive Order No. 10900 shall be subject "o the concurrences 
required by Department Circular No. 175. 

(6) The function conferred upon the Secretary of State by sec- 
tion 2 of the Act to provide for assistance in the development of 
Latin America and in the reconstruction of Chile, and for other 
purposes. 

(7) The functions conferred upon the Secretary of State under 
any provisicm of law, other than the Act and the Foreign Service 
Act of 1946, pertaining specifically, or generally applicable, to 
Foreign Service Reserve officers, Foreign Service Staff officers 
and employees, and alien cleiks and employees, including the 
authority to prescribe or issue regulations, orders, and instruc- 
tions in pursuance of such provisions of law. 

(8) The functions conferred upon the Secretary of State by 
the determination of the President, pursuant to section 604(a) of 
the Act, dated October 18, 1961. 

(9)' The functions conferred upon the Secretary of State by 
section 4 of Executive Order 1 1223.^ 
(b) The authority of the Foreign Service Act of 1946 to appoint, 
employ, and assign personnel, which the Administrator is authorized 
to exercise pursuant to section 625 (d) (2) of the Act, and the provisions 
of the Foreign Service Act which shall apply to personnel so ap- 
pointed or assigned shall consist of : 

(1) The authority available to the Secretary of State under 
the Foreign Service Act of 1946 (including section 571 of that 
Act) relating to Foreign Service Reserve officers, Foreign Serv- 
ice Staff officers and employees, and alien clerks and employees. 

(2) The authority available to the Secretary of State under 
sections 1021 through 1071 of the Foreign Service Act of 1946. 

^ Sec. 1 of Delegation of Authority 104-2 amended paragraph (5), which formerly read 
as follows : "The fiin«tlons conferred upon the Secretary or Department of State by 
Executive Order No. 10900, exclusive of those so conferred by sections 3, 4(d)(8) (to the 
extent It relates to sections 104(h), 104(o). and 104(p) of the Agricultural Trade Develop- 
ment and Assistance Act of 1954), 4(d) (10), 4(d) (11), 4(d) (12), and 4(d) (14) of that 
ordor." 

• Paragraph (0) wa« added by sec. 2 of Delegation of Authority No. 104-5, 

" For text, see page 267. 



260 

(3) The authority available to the Boprd of Foreign Service 
under the Foreign Service Act of 1946. 

(4) Tlie authority to prescribe or issue in pursuance of the 
Foreign Service Act of 194G and the Act, such regulations, orders, 
and instructions, as may be incidental to, or necessary for, or de- 
sirable in connection with, the carrying out of the provisions of 
section 025 (d) (2) of the Act or the provisions of this Delegation 
of Authority. 

(5) The prohibitions contained in sections 1001 through 1005 
of the Foreign Service Act of 1946. 

(c)« I Revolved— 1972]. 

(d) The concurrence of the Secretary of State shall be required 
with respect to the exercise by the Administrator of so much of the 
functions herein delegated pursuant to section r)25(d)(l) of the Act 
as consists of antliorizntion of compensation at any of the rates pro- 
vided for the Foreign Service Reserve and Stalf by the Foreign Serv- 
ice Act of 1040 for persons employed or assigned by agencies of the 
United States (lovernment, other than the Agency. 

(e)" The Administrator shall perfoiin so much of the functions 
under Title VllJ of the Foreign Service Act of 1940 as relates to 
establishing and maintaining retirement records for personnel par- 
ticipating in the Foreign Seivice Ketiiement and Disability System 
un(ler section 025(k) of the Act and for transferring such records to 
the Department of State upon the separation, retirement or death of 
Huch personnel. 

Sec. 3. Ai.i.ocation of Funds. 

(a) There are hereby allocated to the Admiiiistrator the funds al- 
located to the Secretary of State by subsection (a) of section 501 of 
the Executive ()rder,'° except such funds as are appropriated for pur- 
poses of section 481 and section 037(b) of the Act. 

(b) The Administrator may allocate or transfer as appropriate any 
of the funds allocated to him to any agency or part thereof for obli- 
gation or expenditiiie thereby consistent with applicable law. 

Sec. 4. Successorsiiip. The Agency and the Administrator shall 
be deemed to be the successor of the International Cooperation Admin- 
istration and the Director thereof, resi)ectively. with respect to all 
functions delegated or redelegated to tlie International Cooperation 
Administration or the Director thereof. 

Sec. 5. Authorization to Department of Defense. The Secretary 
of Defense is authorized to perform any functions authorized by sec- 
tion 025(d)(1) of the Act to the extent that they relate to other 
functions under the Act administered by the Secretary of Defense: 
Provided, That the authorization pursuant to section 625(d)(1) of 
the Act of compensation at any of the rates provided for the Foreign 
Service Reserve and Staff by the Foreign Service Act of 1946 shall be 
subject to the concurrence of the Secretary of State. 

•Subsection (c) was revoked by sec. 1(c) of Delegation of Authority 104-8. It read as 
follows: "(<•) The Adnilnlstrutor shall be the officer with whom the Secretary of Defense 
shall < onsult pursuant to section 202 of the Executive Order.'* 

•This subsection effective .Ian. 20. 1974 was ndfled by Delegation of Authority No. 104-10. 

"Section 1 of DflHjrntion of Authorltv No. 104-0 added the «-ords ". except «iich funds 
as are appropriated for purposes of section 481 of the Act." Delegation of Authority No. 
104-11, dated July 29. 1975, inserted immediately after "section 481" the words "and 
section 637(b)". 



261 

Sec. 6. Functions Reserved to the Secretakt or State or Other- 
wise Provided for. 

( a) There are hereby reserved to the Secretary of State : 

(1) The function conferred upon the President by section 
511(b) of the Act insofar as such function has been delegated to 
the Secretary of State by section 101 of the Executive Order. 

(2) The functions conferred upon the President by sections 
301(c) and 620(b) of the Act and the first sentence of section 143 
of the Mutual Security Act of 1954. 

(3) So much of the functions conferred upon the President by 
section 624(b) of the Act as consists of fixing the rate of compen- 
sation of the Administrator. 

(4) The function conferred upon the President by section 
624(e) (1) of the Act of appointing the Deputy and Assistant In- 
spector Generals, Foreign Assistance. 

(5) The function conferred upon the Secretary of State by the 
second sentence of section 624(e) (6) of the Act and section 514 
of the Mutual Security Act of 1954. 

(6) The function confer led upon the President by section 
625(a) of tlie Act with respect to personnel in the Department of 
State, other than in the Agency. 

(7) The functions conferred upon the President by section 108 
of tlie Foreign Assistance and Related Agencies Appropriation 
Act, 1962. 

(8)" The function of determining which are friendly nations 
within the meaning of section 107 of the Agricultural Trade 
Development and Assistance Act of 19.54 for the purpose of 
negotiating and concluding agreements pursuant to the authority 
contained m section 3(a) of Executive Order 10900. 

(9)" The function conferred upon the President by section 
35 ( a ) of th e Fo re i gn M i 1 i t a ry Sa 1 es Act . 

(b) The following functions are heieby delegated to officers of the 
Department of State as indicated : 

(1)" To the Under Secretary for Security Assistance: 

( A ) Exclusive of the functions reserved to the Secretary of 
State herein, the functions conferred upon the Secretary of 
State by section 101 of the ex-Executive order insofar as such 
functions relate to programs under Part II of the Act and by 
Executive Order 11501 relating to sales under the Foreign 
Military Sales Act. 

(B) Subject to section 2(a)(2) of this delegation of au- 
thority, the functions conferred upon the Secretary of State 
by section 622(c) of the Act and by section 2(b) of the For- 
eign Military Sales Act relating to continuous supervision 
and general direction of economic assistance and military 
assistance programs and military sales, including, but not 

" Piirnpraph (8) waa added by sec. 2 of Delegation of Authority No. 104-2. 

'* I'nrajrrnph (9) was added by sec. 2 of Delepation of Anthorltv No. 104-7. 

"Snhspctlon (b)(1) was amended by sec. 2(a) of Delegation of Anthorltv 104-8. It 
forinerly rend as follows: "(1) To the TTnder Secretnrv of State: So nin< h of the functions 
conferred upon the Secretary of State by section fi22(c) of the Act and by section 2(b) of 
the Foreign Military Sales Act as relates to effective Integration of econoitdc nsslstimce and 
mllltnry asMist.in<-e and sales programs both at home and abroad so that the foreign policy 
of the United States In beHt nerve*! thereby." 



262 

limited to, whether there shall be a military assistance pro- 
gram for a country and the value thereof or a sale to a country 
and the amount thereof, to the end that such pro^^rams ajid 
sales are etfectively integrated both at home and abroad and 
the foreign policy of the United States is best served thereby. 

(C) Tlie functions conferred upon the Secretary of State 
by section 42(b) of the Foreign Military Sales Act, as 
amended. 

(I)) The functions conferred upon the President by section 
8(d) of Public Law 01-672'* (84 Stat. 2055). 

(E) The functions of negotiating, concluding, and termi- 
nating inteinational agioemcnts relating to security assist- 
ance programs, subject to the concurrences required by the 
State Department Circular 175 procedure. 

(F) The Under Secretary for Security Assistance shall be 
the officer with whom the Secretary of Defense shall consult 
pursuant to section 202 of the Executive order. 

(2)^* 18 Jq (}^g Assistant Secietary of State for Economic Affairs: 

(A) Those fimctions conferred upon the President by the 
Mutual Defense Assistance Control Act of 1951. 

(R) Those functions conferred uj)on the Secretarv' of State 
as Administrator by the Mutual Defense Assistance Cx)ntrol Act 
of 1051. 

(C) Those functions conferred upon the President by sections 
601 (b) (2) and 601 (b) (3) of the Act. 

(D)'^ The function cnnfeii'cd upon the Secretary of State by 
section 8(b) of Executive Order No. 10000 of insuring that all 
functions exercised under section 303 of the Agricultural Trade 
Deve]o|)ment and Assistance Act of 1054 are consistent with the 
foreign policy of the United States. 

(3) *" To the Administrator, Bureau of Security and Consular 
Affairs: 

(A) Those functions conferred upon the President by section 
405(a) of the Mutual Security Act of 1954. 

(4) ^" To the Director, Bureau of Politico-Military Affairs; *■ 
Those functions conferred upon the President by section 414 

of the Mutual Security Act of 1053. 

(5) ^" To the Senior Adviser for International Narcotics Matters: 



" For text, see pa/re .317. 

"Subsection (b)(2) was revoked by sec. 2(b) of Delegation of Authority 104-8. It read 
an follows : 

"(2) To the Director, Bureau of Politico-Military Affairs: 

"(A) So much of tlie functions conferred upon the Secretarv of State by section 
G22(c) of the Act and by section 2(b) of the Foreign Military Sales Act a.« relates to 
continuous supervision and ireneral direction of programs under Part II of the Act 
and sales under the Foreign Military Sales Act. 

"(B) The functions conferred upon the President by section 34 of the Foreign 
Military Sales Act insofar as such functions have been delegated to the Secretary 
of state by section 1(f) of the Executive Order of December 22. 19(i9." 
"Section 2(c) of Delegation of Authority 104-8 redesignated subsections (b)(3), 
(b)(4). and (b)(5) as (b)(2). (b)(3). and (b)(4>. respectivelv. 
" Subparagraph (D) was added by sec. 3 of Delegation of Authority 104-2. 
"Delegation of Authority 104-A redesignated Sec. 6(h) (l)(n) as Sec. 6(b)(3), and 
added the words "To the Director. Office of Munitions Control :" at the beginning. Dele- 
gation of Authority 104-3 substituted tbe words to this point for the words "To the 
Director. Office of Munitions Control". Delegation of Authority No. 104-7 substituted 
the words to this noint for the words "To the Deputy Assistant Secretary for Politico- 
Military AflFairs. Office of the Deputy Under Secretary of State for Political Affairs". 

••Subsection (5) was added by Sec. 2 of Delegation of Authority No. 104-9 (effective 
Nov. 16. 1973). 



263 

( A ) those functions conforrod upon the President by section 481 
of the Foreij?n Assistance Act of 1961, as amended, together with 
all those authorities contained in the Foreign Assistance Act, to 
the extent necessary or appropriate to accomplish the purposes of 
Section 481 of the Foreign Assistance Act. 

(B) the functions of negotiating, concluding and terminating 
internntional agreements relating to international narcotics pro- 
grams subject to the concurrences required by the State Depart- 
ment Circular 175 procedure. 

(c) The Administrator, l^urenu of Security and Consular Affairs, 
sliall carry ont the activities authorized by sections 405(c), 405(d). 
and 451 (c) of the Mutual Security Act of 1054. except so much of the 
activities under section 451 (c) of' that Act as relates to progi'ams ad- 
ministered by the Department of Health, Education, and Welfare on 
behalf of Cuban refugees. 

(d) The Administrator and the Secretary of Defense are author- 
ized to make the designations and standards provided for in section 
0:25 (g) of the Act with regard to theii* i-espective functions under the 
Act. 

(e)=° The Secretary of Health, Education, and Welfare is author- 
ized to perform any functions authoiized by section 0:55 (d) of the 
Act of the extent that they I'elate to programs under section 451 (c) of 
the Mutual Security Act of 1954, as amended, administered by the Sec- 
letary of Healthy Education, and Welfare on behalf of Cuban refugees 
and cariied out ni furtherance of the purposes of the Act with funds 
available under the Act. 

(f)'" The Administrator and any other officer to whom functions 
are delegated by this Delegation of Authority may, to the extent con- 
sistent with law : ( 1 ) delegate or assign any of the functions delegated 
or assigned to him bj^ this Delegation of Authority, including with 
respect to the Administrator, authority to delegate or assign any of 
such functions to an officer of the Department of State, and (2) au- 
thorize any officer to whom functions are so delegated or assigned 
successively to redelegate or reassign any of such functions. 

(g)2o "Yhe Administrator and any other officer to whom functions 
are delegated by this Delegation of Authority mav promulgate from 
time to time, to the extent consistent with law, sucli rules and regula- 
tions as may be necessary and proper to carry out any of his functions. 

Sec. 7. General Provsisons. 

(a) (1)21 ^j^y reference in this delegation of authority to any Act, 
order, determination, or delegation of authority shall be deemed to be 

^Delegation of Authority No, 104-1 added subsection (e) and redesignated subsections 
(e) and (f) to be "(f)" and "(g)". respectively. Delegation of Authority No. 104-4 
amended subsection (f). effective March 4, 1904. Subsection (f) formerly read as follows: 
"Tlie Administrator and any other officer to whom functions are delegated by this Dele- 
gation of Authority may, to the extent consistent with law. delegate or assign any of 
the functions delegated or assigned to him by this Delegation of Authority and authorize 
any of his sui)ordinates to whom functions are so delegated or assigned sucessively to 
redelegate or reassign any of such functions." 

-•1 Section 3(a) of Delegation of Authority 104-8 amended subsection (a), which 
formerly read as follows : 

"(a) Any reference in this Delegation of Authority to any act. order, determination, or 
Delegation of Authority shall be deemed to be a reference to such Act. order, determina- 
tion, or Delegation of Authority as amended from time to time. Any reference in this 
Delegation of Authority to provisions of any appropriation Act shall be deemed to include 
a reference to any hereafter enacted provisions of law which are the same or substan- 
tially the same as such appropriation Act provisions." 



264 

a reference to such Act, order, determination, or delegation of author- 
ity as amended from time to time. 

(2) Any reference in this delegation of authority to provisions of 
any ai)propriation Act shall be deemed to include a reference to any 
hereafter enacted provisions of law which are the same or substan- 
tially the same as such appropriation Act provisions. 

(3) Unless otherwise specified, any reference in this delegation of 
authority to part 1 of the Act shall be deemed to be a reference also to 
chapter 4 of part II, and any reference in this delegation of authority 
to part II of the Act shall be deemed not to include chapter 4 of such 
part II, in accordance with section 202(b) of Public Law 92-22C 
(86 Stat. 27). 

(4) Any reference in this delegation of authority to security assist- 
ance shall be deemed to include all forms of security assistance, in- 
cluding military assistance under pail II of the Act, sales, credit sales 
and guarantees under the Foreign Military Sales Act, security sup- 
porting assistance under chapter 4 of part II of the Act, and naval 
vessel loans as authorized by law. 

(b) This Delegation of Authority supersedes Delegation of Au- 
thority No. 85-10 of February 2, 1961, Redelegation of Authority No. 
85-lOA of February 2, 1961, and Delegation of Authority No. 103-1 
of September 13, 1961 : Provided^ That all detemiinations, authoriza- 
tions, regulations, rulings, certificates, orders, directives, contiacts, 
agreements, and other actions made, issued, or entered into with respect 
to any function affected by this Delegation of Authority and not 
revoked, superseded, or otherwise made inapplicable before the effec- 
tive date of this Delegation of Authority shall continue in full force 
and effect until amended, modified, or terminated by appropriate 
authority. 

(c) " Notwithstanding any provision of this delegation of authority, 
the Secretai7 of State or the Deputy Secretary of State may at any 
time exercise any function delegated to any officer of the Department 
of State, including the Agency, by this delegation of authority. 

(d) This Delegation of Authority shall be deemed to have become 
effective on Sept. 30, 1961. 

Ghkster Bowlks, 
Acting Secretary of State, 

Dated : November 3, 1961. 

*« Section 202(b) of the Foreign Assistance Act of 1971 provides na follows: 

"('lini»(Hr 4 of r^art I of the F«»relun Assisiniwe Act of lUfJl Is hereby repealed. Refer 
.aces to such chapter or any sections thereof shall hereafter be deemed to be references 
to choiiter 4 of iturt II of the F'orelgn Assislance -\ci of IIXJl, as added by siibsecflon 
(a» of this section, or to appropriate sections thereof. All references to part I of the 
Foreign Assistance Act of l!»fil shall hereaiter be dp»*mi.(| to u^ retVrerin'x alsn to I'linider 
4 of part II. and all references to part II of such Act shall be deemed not to Include 
chapter 4 of siith part II. " 

-'Section 3(2) of Delegation of Authority 104-8 amended Subsection (c). wlilcli for- 
merly rend as follows: 

"(c) Notwithstanding anj provision of this Delegation of Authority, the Secretary of 
State niny at any time exercise any function delegated to any officer of the Department 
of state. Including the Agency, by this Delegation of Authority.*' 



265 



Note. — The last paragraph of Amendment No. 8 to Delegation 
of Authority No. 104 (37 F.R. 21449) provides: 

"The foregoing amendments to State Department Delegation 
of Authority No. 104 shall become effective upon publication in 
the Federal Register.*^ Any determinations, authorizations, 
regulations, rulings, certificates, orders, directives, contracts, 
agreements, standards, criteria, and other actions made, issued 
or entered into with respect to any function affected by this 
delegation of authority and not revoked, superseded, or other- 
wise made inapplicable before such effective date shall continue 
in full force and effect until amended, modified or terminated 
by appropriate authority." 



« October 11, 1972. 



20-818 O - 78 - If 



c. Executive Order 11223 
May 12, 1965, 30 F.R. 6635, 3 CFR, 1964-65 Comp., p. 312 

Relatino to the Perfoijmance of Functions Autiiokized by the 
Foreign Assistance Act of lOGl, as Amended 

By virtue of the aiitliority vested in me by section 03*5 of the For- 
eipi Assistance Act of 1061, as amended, 75 Stat. 454 (22 U.S.C. 2393) , 
it is hereby determined that, to the extent hereinafter indicated, tlie 
perfoiinance of functions autliorized by tliat Act, as amended, and any 
piedecessor le^fislation, witliout re<rard to the laws specified in tlie 
numl)ered subdivisions of sections 1 and 2 of this order and witliout 
re<rard to consideration as specified in sections 3 and 4 of this order 
will further the purposes of the Foreign Assistance Act of 19G1, as 
amended : 

Section 1. With respect to functions authorized by the Forei<rn 
Assistance Act of 1961, as amended (22 U.S.C. 2151 et seq.), and any 
predecessor len:islation except those functions exercised by the Depart- 
ment of Defense under authority of sections 621 and 623 of the For- 
eicrn Assistance Act of 1961 (22 U.S.C. 2381 and 2383) : 

(1) The Act of March 26, 1934, 48 Stat. 500, as amended (15 
U.S.C. 616a). 

(2) Section 3648 of the Revised Statutes, as amended. 60 Stat. 
809 (31 U.S.C. 529). 

(3) Section 305 of the Federal Property and Administrative 
Services Act of 1949, 63 Stat. 396, as amended (41 U.S.C. 255). 

(4) Section 3709 of the Revised Statutes, as amended (41 
U.S.C. 5). 

(5) Section 3710 of the Revised Statutes (41 U.S.C. 8). 

(6) Section 2 of title III of the Act of March 3, 1933, 47 Stat. 
1520 (41 U.S.C. 10a). 

(7) Section 3735 of the Revised Statutes (41 U.S.C. 13). 

(8) Section 304(c) of the Federal Property and Administra- 
tive Services Act of 1049, as added bv the Act of October 31, 1951, 
65 Stat. 700 (41 U.S.C. 254(c) ). but only with respect to contracts 
entered into with foreign irovernments or acrencies thereof for the 
renderinrr of services to the United States or an airency thei-eof 
within the continental limits of the United States. 

(9) Section 901 (f\) of the Merchant Marine Act. 1936. 49 Stat. 
2015. ns amended r46TLS.C. 1241 (a) ).^ 

Sec. 2. With respect to purchases authorized to be made outside the 
limits of the United States or the District of Columbia under the For- 
ei^ Assistance Act of 1961, as amended, and any predecessor legis- 
lation : 

n) SectioTi 2276ra) of Title 10 of the United States Code. 

(2) Section 231.'^,(b) of Title 10 of the United States Code. 

(266) 



267 

(3) Section 304(c) of the Federal Property and Administra- 
tive Services Act of 1949, as added by the Act of October 31, 1951, 
65 Stat. 700 (41 U.S.C. 254(c) ). 

(4) Section 1301 of tlie Second War Powers Act, 1942, 56 Stat. 
185 (50 U.S.C. App. G43), as extended by the provisions of tlie 
Act of June 30, 1953, 67 Stat. 120. 

(5) Section 3(b) of the Act of August 28, 1958, 72 Stat. 972 
(50 U.S.C. 1433(b)), but only with respect to contracts in which 
the inclusion of tlie clause required by section 3(b), or the com- 
pliance with that clause, if included in a contract, is deemed by 
the executive or military department concerned to be imprac- 
ticable. 

Srx. 3. With lespect to cost-type contracts heretofore or hereafter 
made with non-profit institutions under which no fee is charged or 
paid, amendments and modifications of such contracts may be made 
with or without consideration and may be utilized to accomplish the 
same things as any original contract could have accomplished, irre- 
spective of the time or circumstances of the making, or the form of the 
contract amended or modified, or of the amending or modifying con- 
tract and irrespective of rights which may have accrued under the 
contract or the amendments or modifications thereof. 

Sec. 4. With respect to contracts heretofore or hereafter made, other 
than those described in Section 3 of this order, amendments and modi- 
fications of such contracts may be made with or without consideration 
and may be utilized to accomplish the same things as any original 
contract could have accomplished, irrespective of the time or circum- 
stances of the making, or the form of the contract amended or modified, 
or of the amending or modifying contract, and inespective of rights 
which may have accrued under the contract or the amendments or 
modifications thereof, if the Secretary of State determines in each case 
that such action is necessary to protect the foreign policy interests of 
the United States. 

Sfx. 5. Executive Order No. 10784 of October 1, 1958, and Execu- 
tive Order No. 10845 of October 12, 1959, are hereby superseded. 

Lyndon B. Johnson. 
The White House, May 12, 1965, 



d. Executive Order 11579 

JanuaiT 19» 1971. 36 F.R. 969, January 21, 1971 

On'Erse.vs Private Investment Corporation 

By virtue of the authority vested in me by the Foreign Assistance 
Act of lOGl (75 Stat. 424), as amended (hereinafter the "Act''), and 
section .'^Ol of title 3 of the United States Code, and as President of the 
United States, it is ordered as follows: 

Sechon 1. Transfer to Overseas Private Investment Corporation. 
All obligations, assets and related rights and responsibilities arising 
out of, or related to^ predecessor progiams and authorities similar to 
those provided for in sections 234 (a)^ (b) and (d) of the Act are 
Iiereby transferred to the Overseas Private Investment Corpoiation 
(hereinafter the "Corporation"). 

Sec. 2. Delegation of functions, (a) The functions conferred upon 
the President by sections 621(b), ()2r)(d) (1), 627, 628, 620(b), 630 and 
635(d) of the Act insofar as such functions relate to the operation of 
the Corporation, its activities, or personnel are hereby delegated to the 
Coiporation : Provided, That the concurrence of the Secretary of State 
shall be required with respect to the exercise by the Corporation of so 
much of the functions herein delegated pursuant to section 625(d) (1 ) 
of the Act as consists of authorization of compensation at any of the 
'•ut(;s piovided for the Foreign Service Reserve and Staff by the For- 
eign Service Act of 1946 for persons employed or assigned by the 
Corporation. 

(b) The function of prescribing regulations relating to the lein 
statement m- restoration of officers and employees of the Coiporation 
to othei- government positions, when their appointment to a position in 
the Corporation was made from another government position and 
their separation from the Corporation was not made foi* cause, is 
hereby delegated to the Civil Service Commission. 

Sec. 3. Allocation and transfer of funds. Funds made available 
under section 232 of the Act (repealed by section 105 of the Foreign 
Assistance Act of 1969) which are obligated but unexpended are 
hereby transferred to the Corporation. 

Sec. 4. General provisions, (a) As used in this order, the words 
"function'' or "functions'' include any duty, obligation, power, author- 
ity, responsibility, right, privilege, discretion, or activity. 

(b) The Corporation shall be deemed to be the successor of the 
Agency for International Development and the Administrator there- 
of, with respect to all functions vested in the Corporation pursuant to 
law. 

(c) Except to the extent that they may be inconsistent with this 
order, all determinations, authorizations, regulations, rulings, certifi 
cates, orders, directives, contracts, agreements, and other actions made, 

(268) 



269 

issued, or entered into with respect to any function affected by this 
order and not revoked, superseded or other. zise made inapplicable be- 
fore the date of this order, shall continue in full force and effect until 
amended, modified, or teiminated by appropriate authority. 

(d) Executive Order No. 10973 of November 3, 1961, as amended,* 
is hereby superseded insofar as any provision therein is in conflict with 
any provision herein. 

(e) The provisions of this order shall become effective upon adop- 
tion by the Board of Directors of bylaws for the Corporation. 

Richard Nixon. 
The White House. Jamwry J9, J971. 



1 For text, see page 249. 



I 

i 



5. Foreign Military Sales 
a. The Arms Export Control Act 

CONTENTS 

Page 
Chapter 1 — Foreign and National Security Policy Objectives and Re- 
straints 273 

Section 1 — The Need for International Defense Cooperation and 

Military Export Controls 273 

Section 2 — Coordination With Foreign Policy 275 

Section 3— Eligibility 275 

Section 4 — Purposes for Which Military Sales by the United States 

Are Authorized 279 

Section 5 — Prohibition Against Discrimination 279 

Chapter 2 — Foreign Military Sales Authorizations 281 

Section 21— Sales From Stock 281 

Section 22 — Procurement for Cash Sales 283 

Section 23— Credit Sales 285 

Section 24 — Guaranties 285 

Section 25 — Annual Estimate and Justification for Sales Program 286 

Chapter 3 — Military Export Controls 287 

Section 31 — Authorization and Aggregate Ceiling on Foreign Military 

Sales Credits 287 

Section 32 — Prohibition Against Certain Military Export Financing 

by Export-Import Bank 288 

Section 33 — Regional Ceilings on Foreign Military Sales 288 

Section 34 — Foreign Military Sales Credit Standards 288 

Section 35 — Foreign Military Sales to Less Developed Countries 288 

Section 36 — Reports on Commercial and Governmental Military Ex- 
ports; Congressional Action 289 

Section 37 — Fiscal Provisions Relating to Foreign Military Sales 

Credits 293 

Section 38 — Control of Arms Exports and Im ports 293 

Section 39 — Fees of Military Sales Agents and Other Payments 295 

Chapter 4 — General, Administrative, and Miscellaneous Provisions 296 

Section 41— Effective Date 296 

Section 42 — General Provisions 296 

Section 43 — Administrative Expenses 298 

Section 44 — Statutory Construction 298 

Section 45 — Statutes Repealed and Amended 298 

Section 46 — Saving Provisions 299 

Section 47 — Definitions 299 

(271) 



a. The Arms Export Control Act 

Public Law 90-629 [H.R. 15681], 82 Stat. 1320, approved October 22, 1968, as 
amended by Public Law 91-^72 [H.R. 15628], 84 Stat. 2053, approved Jan- 
uary 12, 1971; Public Law 92-226 [Foreign Assistance Act of 1971; S. 2819], 
86 Stat. 20, 32, approved February 7, 1972; Public Law 93-189 [Foreign As- 
sistance Act of 1973; S. 1443], 87 Stat. 714, 729, approved December 17, 1973; 
Public Law 93-559 [Foreign Assistance Act of 1974; S. 3394], 88 Stat. 1795, 
1813, approved December 31, 1974; Public Law 94-329 [International Se- 
curity Assistance and Arms Export Control Act of 1976; H.R. 13680], 90 Stat. 
729, approved June 30, 1976; Public Law 95-92 [International Security As- 
sistance Act of 1977, H.R, 6884], 91 Stat. 614, approved August 4, 1977; and 
Public Law 95-105 [Foreign Relations Authorization Act, Fiscal Year 1978, 
H.R. 6689], 91 Stat. 844 at 846, approved August 17, 1977. 

AN ACT To consolidate and revise foreign assistance legislation relating to 
reimbursable military exports 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Arms Export Control Act".^ 

Chapter 1— FOREIGN AND NATIONAL SECURITY POLICY 
OBJECTIVES AND RESTRAINTS 

Sec, 1,- The Need for International Defense Cooperation and 
Military Export Controls, — As declared by the Congress in the 
Arms Control and Disarmament Act, an ultimate goal of the United 
States continues to be a world which is free from the scOurge of war 
and the dangers and burdens of armaments ; in which the use of force 
has been subordinated to the rule of law ; and in which international 
adjustments to a changing world are achieved peacofully. In further- 
ance of that goal, it remains the policy of the United States to en- 
courage regional arms control and disarmament agreements and to 
discourage arms races. 

The Congress recognizes, however, that the United States and other 
free and independent countries continue to have valid requirements 
for effective and mutually beneficial defense relationships in order to 
maintain and foster the environment of international peace and secu- 
rity essential to social, economic, and political progress. Because of 
the growing cost and complexity of defense equipment, it is increas- 
ingly difficult and uneconomic for any country, particularly a develop- 
ing country, to fill all of its legitimate defense requirements from its 
own desisrn and production base. The need for international defense 
cooperation amon.<r the United States and those friendlv countries to 
which it is allied by mutual defense treaties is especially important, 



iThp upw title. "Arms Export Control A^t". wna a<1rte(l In lien of "The For^lfn MlH^ary 
Sales Act" bv Sec. 201 of the International Secnritv Assistance anrt Ar^ns Exnort Control 
Act of ift76. Sec. 201 further stated that "any refprence to the Foreign Military Sales Act 
shall he deprnpd to be a reference to the Arms Export Control Act." 

• 22 use 2751. 

(273) 



274 

sinro the cffootivonoss of their armed forces to act in concert to deter 
or defeat aij^ression is directly related to the operational compati- 
bility of their defense equipment. 

Accordinirly, it remains the policy of the United States to facilitate 
the common defense by enterinir into international arrancrments with 
friendly countries wjiich further the objective of applyinc: agreed 
resources of each country to proirrams and projects of cooperative 
exchanire of data, research, development, production, procurement, 
and loofistics support to achieve specific national defense requirements 
and objectives of mutual concern. To this end, this Act authorizes sales 
by the United States Government to friendly countries having suffi- 
cient wealth to maintain and equip their own militarv forces at ade- 
quate strenirth. or to assume protrn^ssively larger shares of the costs 
thereof, without undue burden to their economies, in accordance with 
the restraints and control measures specified herein and in furtherance 
of the security objectives of the Ignited States and of the purposes and 
principles of the United Nations Charter. 

It is the sense of the Conprress that all such sales be approved only 
when they are consistent with the foreiorn policy interests of the 
United States, the purposes of the forei<rn assistarce proirram of the 
United States as embodied in the Foreiirn Assistance Act of 1961,' as 
amended, the extent and character of tlie military requirement, and 
the economic and financial capability of the recipient country, with 
particular re<T:ard bein^ p:iven, where appropriate, to proper balance 
amomr such sales, prant militarv assistance, and economic assistance 
as well as to the impact of the sales on prorrrams of social and eco- 
nomic development and on existincr or incipient arms races. 

It is further the sense of Conirress that sales and crnaranties under 
sections "21. ^'A. 2»5, and 24, shall not be approved where they would 
have the elTect of arminor militarv dictators who are denyinor the 
prrowth of fundamental riiihts or social progress * to their own people : 
Provided, Tliat the President may waive this limitation when he de- 
termines it would be important to the security of the United States, 
and promptly .so reports to the Speaker of the House of Representa- 
tives and the Committee on Foreign Relations in the Senate. 

It shall be the policy of the United States to exert leadership in the 
world comnuniity to brin^ about arran^rements for reducing the inter- 
national trade in implements of war and to lessen the danger of out- 
break of regional conflict and the burdens of armaments. United 
States programs for or procedures governing the export, sale, and 
grant of defense articles and defense services to foreign countries and 
international organizations shall be administered in a manner which 
will carry out this policy. 

It is the sense of the Congress that the President should seek to ini- 
tiate multilateral discussions for the purpose of reaching agreements 
among the principal arms suppliers and arms purchasers and other 
countries with respect to the control of the international trade in arma- 
ments. It is further the sense of Congress that the President should 
work actively with all nations to check and control the international 
sale and distribution of conventional weapons of death and destruc- 
tion and to encourage regional arms control arrangements. In further- 

^ For text, see paee 9. 

*Sec. 4 of Public Law 91-672 (Foreign Military Sales Act Amendments of 1971) sub- 
stituted the words "denying the growth of fundamental rights or social progress" in lieu 
of "denying social progress". 



275 

ance of this policy, the President should undertake a concerted effort 
to convene an international conference of major arms-supplying and 
arms-purchasinfy nations which shall consider measures to limit con- 
ventional arms transfers in the interest of international peace and 
stability. 

It is the sense of the Congress that the aggregate value of defense 
articles and defense services — 

(1) which are sold under section 21 or section 22 of this Act; 
or 

(2) which are licensed or approved for export under section 
38 of this Act to, for the use, or for benefit of the armed forces, 
police, intelligence, or other internal security forces of a foreign 
country or international organization under a commercial sales 
contract ; 

in any fiscal year should not exceed current levels.^ 

Sec. 2.^ Coordination With Foreign Policy. — (a) Nothing con- 
tained in this Act shall be construed to infringe upon the powers or 
functions of the Secretary of State. 

(b) Under the direction of the President, the Secretary of State, 
taking into account other United States activities abroad, such as mili- 
tary assistance, economic assistance, and food for freedom, shall be 
responsible for the continuous supervision and general direction of 
sales and exports " under this Act, including, but not limited to, deter- 
mining whether there shall be a sale to a country and the amount 
thereof, and whether there shall be delivery or other performance 
under such sale or export,® to the end that sales and exports ^ are 
integrated with other United States activities and the foreign policy 
of the United States is best served thereby. 

(c) The President shall prescribe appropriate procedures to assure 
coordination among representatives of the United States Government 
in each country, under the leadership of the Chief of the United States 
Diplomatic Mission. The Chief of the diplomatic mission shall make 
sure that recommendations of such representatives pertaining to sales 
are coordinated with political and economic considerations, and his 
comments shall accompany such recommendations if he so desires. 

Sec. 3.^ Eligibility. — (a) No defense article or defense service shall 
be sold by the United States Government under this Act to any coun- 
try or international organization unless — 

(1) the President finds that the furnishing of defense articles 
and defense services to such country or international organiza- 
tion will strengthen the security of the United States and pro- 
mote world peace ; 



6 Sec. 202(a) of the International Security Assistance and Arms Export Control Act 
of 1976 amended Sec. 1 by striking out the last paragraph and adding the language 
beginning with "It shall be the policy of the United States". The last paragraph of 
Sec. 1 formerly read as follows : "In order to reduce the role of the United States Gov- 
ernment in the furnishing of defense articles and defense services to foreign countries 
and international organizntlons, and return such transactions to commercial channels, the 
United states Government shall reduce its sales, credit sales, and guaranties of such 
articles, nnr? defense services as soon as, and to the maximum extent, practicable." 

« 22 use 2752. 

7 The words "and exports" were added by Sec. 212(a)(2) of the International Security 
Assistance and Arms Export Control Act of 1976. 

8 The words "and whether there shall be delivery or other performance under such sale or 
export," were added bv Sec. 212(a)(2) of the International Security Assistance and Arms 
Exp-rt Control Act of 1976. 

•22 use 2753. 



276 

(2) tlie country or international organization shall have agreed 
not to transfer title to, or possession of, any defense article or 
related training or other defense service ^° so furnished to it to 
anyone not an oilicer, employee, or agent of that country or inter- 
national organization and not to use or permit the use of such 
article or related training or other defense service ^° for purposes 
other than those for which furnished *^ unless the consent of the 
President has first been obtained; 

(3)*^ the country or international organization shall have 
agreed that it will maintain the security of such article and will 
provide substantially the same degree of security protection 
afforded to such article by the United States Government; and 
(4)^" the country or interiuitional organization is otherwise 
eligible to purchase defense articles or defense services. 
In considering a recpiest for approval of any transfer of any weapon, 
weapons system, munitions, aircraft, military boat, military vessel, 
or other implement of war to another country, the President shall 
not give his consent under paragraph (2) to the transfer unless the 
United States itself would tiansfer the defense article under consid- 
eration to that country. ^^ In addition, the President shall not give his 
consent under paragraph (2) to the t ansfer of any signiricant defense 
articles on the United States INIunitio is List unless the foreign country 
requesting consent to transfer agrees to demilitarize such defense 
articles prior to transfer, or the proposed recipient foreign country 
provides a connnitment in writing to the United States Government 
that it will not transfer such defens- articles, if not demilitarized, to 
any other foreign country or persor without first obtaining the con- 
serit of the President. ^^ The Presidei.c shall promptly submit a report 
to the Speaker of the House of Kepr-'sentatives and to the (/ommittee 
on Foreign Relations of the Senate on the implementation of each 
agreement entered into pursuant to clause (2) of this subsection. 
(I)) 15 * * * [Repeated— 1977] 

(c)(l)(A)^*^ No credits (including participations in credits) may 
be issued and no guaranties may be extended for any foreign country 
under this Act as hereinafter provided, if such country uses defense 
articles or defense services furnished under this Act, or any predeces- 
sor Act, in substantial violation (either in terms of quantities or in 
terms of the gravity of the consequences regardless of the quantities 



1" Sec. 203(a) of the International Security Assistance and Arms Export Control Act of 
197G added the words "or related training or other delense sorvlce". 

"Sec. 25(2) of the FAAct of 1978 struck out "and" at the end of paragraph (2) and 
adde() the words to this point beginning with "and not to use or permit '. 

^ Sec. 25(2) (I!) of ihe FAAct of i973 added paragraph (3) and redesignated former 
par.igraph (3) as paragraph (4). 

"Sec. 204(b)(1) of the International Security Assistance and Arms Export Control Act 
of 1976 amended Sec. 3 by striking out the following language after "country" : ". and prior 
to the date he intends to give his consent to the transfer, the President notifies the Speaker 
of tlie Ilouse of Representatives and the Committee on Foreign Relations of the Sennte In 
writing of each such in tended consent, the justification for giving such consent, the defense 
article for which he intends to give his consent to be so transferred, and the foreign coun- 
try to which that defense article is to be transferred". 

'* The words to this point, beginning with "In considering a request for approval" 
were added by Sec. 25(2) (C) of the FAAct of 1973. 

^- Subsection (b). as amende^ bv Sec 1 ot i'liMic T,aw 91-71, was repealed bv Sec. l.l 
of the International Security Assistance Act of 1977 (91 Stat. 622). It had concerned 
U.S. military assistance to a country which had seized an American fishing vessel outside 
a twelve mile lin'it. 

" Sec. .304(b) (1) of the International Security Assistance and Arms Export Control Act of 
1976 amended Subsection (c), which formerly read as follows : 

"(c) Except as otherwise provided in subsection (d). any foreign country which here- 
after uses defense articles or defense services furnished such country under this Act, in 
substantial violation of any provision of this Act or any agreement entered into under this 
Act, shall be immediately ineligible for further cash sales, credits, or guarantees." 



277 

involved) of any agreement entered into pursuant to any such Act 
(i) by using such articles or services for a purpose not authorized 
under section 4 or, if such agreement provides that such articles or 
services may only be used for purposes more limited than those au- 
thorized under section 4 for a purpose not authorized under such 
agreement; (ii) by transferring such articles or services to, or per- 
mitting any use of such articles or services by, anyone not an officer, 
employee, or agent of the recipient country without the consent of the 
President; or (iii) by failing to maintain the security of such articles 
or services. 

(B) No cash sales or deliveries pursuant to previous sales may be 
made with respect to any foreign country under this Act as herein- 
after provided, if such country uses defense articles or defense serv- 
ices furnished under this Act, or any predecessor Act, in substantial 
violation (either in terms of quantity or in terms of the gravity of 
the consequences regardless of the quantities involved) of any agree- 
ment entered into pursuant to any such Act by using such articles or 
services for a purpose not authorized under section 4 or, if such agree- 
ment provides that such articles or services may only be used for pur- 
poses more limited than those authorized under section 4, for a pur- 
pose not authorized under such agreement. 

(2) The President shall report to the Congress promptly upon the 
receipt of information that a violation described in paragraph (1) of 
this subsection may have occurred. 

(3) (A) A country shall be deemed to be ineligible under subpara- 
graph (A) of paragraph (1) of this subsection, or both subparagraphs 
(A) and (B) of such paragraph in the case of a violation described 
in both such paragraphs, if the President so determines and so reports 
in writing to the Congress, or if the Congress so determines by joint 
resolution. 

(B) Notwithstanding a determination by the President of ineligi- 
bility under subparagraph (B) of paragraph (1) of this subsection, 
cash sales and deliveries pursuant to previous sales may be made if the 
President certifies in writing to the Congress that a termination there- 
of would have significant adverse impact on United States security, 
unless the Congress adopts or has adopted a joint resolution pursuant 
to subparagraph (A) of this paragraph with respect to such 
ineligibility. 

(4) A country shall remain ineligible in accordance with paragraph 

( 1 ) of this subsection until such time as — 

(A) the President determines that the violation has ceased; 
and 

(B) the country concerned has given assurances satisfactory to 
the President that such violation will not recur. 

(d)^^ (1)^^ The President may not give his consent under paragraph 

(2) of subsection (a) or under the third sentence of such subsection to 

1^ Sec. 204 fa) of the International Security Assistance and Arms Export Control Act of 
1970 added Subsections (e) and (f). Sec. 304 (b)(2) of the same Act repealed Subsection 
(d) and redesignated Subsections (e) and (f) as (d) and (e). Previously, Subsection (d) 
read as follows : 

"(d) A country shall remain inelipible in accordance with subsection (c) of this section 
until such time as the President determines that such violation has ceased, that the coun- 
try concerned has Riven assr ranees satisfactory to the President that such violation will 
not recur, and that, if such violation involved the transfer of sophisticated weapons with- 
out the consent of the President, such weapons have been returned to the country 
concerned." 

^'*^pc. 16 of the International Security A^sist-^nce Act of 1977 (91 Stat. 622) added 
the designation "(1)", redesignated paragraphs (1) through (5) as (A) through (E), and 
added a new paragraph (2). 



278 

a transfer of a defenpo article, or related training or other defense 
service, sold under this Act and may not give his consent to such a 
transfer under section 505(a)(1) or 505(a)(4) of the Foreign As- 
sistance Act of IOC)! unless ^^ the President submits to the Speaker of 
the House of Representatives and the Committee on Foreign Relations 
of the Senate a written certificaton with respect to such proposed trans- 
fer containing — 

(A) the name of the country or international organization pro- 
posing to make such transfer, 

(B) a description of the defense article or related training or 
other defense service proposed to be transferred, including the 
original acquisition cost of such defense article or related training 
or other defense service, 

(C) the name of the proposed recipient of such defense article 
or related training or other defense service, 

(D) the reasons for such proposed transfer, and 

( E ) the date on wliich such transfer is proposed to be made. 
Any certification submitted to Congress pursuant to this subsection 
shall bo unclassified. excei)t that information regarding the dollar 
value and number of defense articles, or lelated training or other 
defense services. ])roposed to be transferred may be classified if public 
disclosure thereof would be clearly detrimental to the security of the 
TTnited States. 

(2)^® Unless the President states in the certification submitted pur- 
suant to this subsection that an emergency exists which requires that 
consent to the proposed transfer become effective immediately in the 
national security interests of the United States, such consent shall not 
become effective imtil 30 calendar days after the date of such sub- 
mission and such consent shall become effective then only if the Con- 
gress does not adopt, within such 30-day period, a concurrent resolu- 
tion disapproving the proposed transfer. 

(3)2^ This subsection shall not apply — 

(A) to transfers of maintenance, repair, or overhaul defense 
services, or of the repair parts or other defense articles used in 
furnishing such services, if the transfer will not result in any 
increase, relative to the original specifications, in the military 
capability of the defense articles and services to be maintained, 
repaired, or overhauled ; 

(B) to temporary transfers of defense articles for the sole 
purpose of receiving maintenance, repair, or overhaul; or 

(C) to cooperative cross servicing arrangements among mem- 
bers of the North Atlantic Treaty Organization. 

(e) If the President receives any information that a transfer of any 
defense article, or related training or other defense service, has been 
made without his consent as required under this section or under 
section 505 of the Foreign Assistance Act of 1961, he shall report 
such information immediately to the Speaker of the House of Repre- 
sentatives and the Committee on Foreign Relations of the Senate. 

^» The words ", 30 days prior to privlng such consent.", which previously appeared at 
this point, were struck out by Sec. 16(1) of the International Security Assistance Act of 
1977 (91 Stat. 622). 

20 Paragraph (3) was added by Sec. 17 of the International Security Assistance Act of 
1977 (91 Stat. 622). 



279 

(f)2i(l) Unless the President finds that the national serurity re- 
quires otherwise, he shall terminate all sales, credits, and guaranties 
under this Act to any government \yhich aids or abets, by granting 
sanctuary from prosecution to, any individual or group which has 
committed an act of international terrorism. The President may not 
thereafter make or extend sales, credits, or guaranties to such govern- 
ment until the end of the one year period beginning on the date of such 
termination, except that if during its period of ineligibility for sales, 
credits, and guaranties pursuant to this section such government aids 
or abets, by granting sanctuary from prosecution to, any other individ- 
ual or group which has committed an act of international terrorism, 
such government's period of ineligibility shall be extended for an addi- 
tional year for each such individual or group. 

(2) If the President finds that the national security justifiies a con- 
tinuation of sales credits, or guaranties to any government described 
in paragraph (1), he shall report such finding to the Speaker of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate. 

Sec. 4.^- Purposes for Which Military Sales by the United 
States Are Authorized. — Defense articles and defense services shall 
be sold by the United States Government under this Act to friendly 
countries solely for internal security, for legitimate self-defense ar- 
rangements or measures consistent with the Charter of the United 
Nations, or otherwise to permit the recipient country to participate in 
collective measures requested by the United Nations for the purpose of 
maintaining or restoring international peace and security, or for the 
purpose of enabling foreign military forces in less developed friendly 
countries to construct public works and to engage in other activities 
helpful to the economic and social development of such friendly coun- 
tries. It is the sense of the Congress that such foreign military forces 
should not be maintained or established solely for civic action activi- 
ties and that such civic action activities not significantly detract from 
the capability of the military forces to perform their military missions 
and be coordinated with and form part of the total economic and social 
development effort : Provided^ That none of the funds contained in this 
authorization shall be used to guarantee, or extend credit, or parti- 
cipate in an extension of credit in connection with any sale or sophisti- 
cated weapons systems, such as missile systems and jet aircraft for 
military purposes, to any underdeveloped country other than Greece, 
Turkey, Iran, Israel, the Republic of China, the Philippines, and Korea 
unless the President determines that such financing is important to the 
national security of the United States and reports within thirty days 
each such determination to the Congress. 

Sec. 5." Prohibitiox Against Discrimination. — (a) It is the 
policy of the United States that no sales should be made, and no credits 
(including participations in credits) or guaranties extended to or for 
any foreign country, the laws, regulations, official policies, or govern- 
mental practices of which prevent any United States person (as de- 

21 Subsection (f ) was added by Sec. 18 of the International Security Assistance Act of 
1977 (91 Stat. 622). 

22 22 US^C 2754. 

23 22 use 2755. Sec. 5 was added by Sec. 302(b) of the International Security Assistance 
and Arms Export Control Act of 1976. 



280 

fined in section 7701 (a) (30) of the Internal Revenue Code of 1954) 
from participating in the furnishing of defense articles or defense 
services under this Act on the basis of race, religion, national origin, 
or sex. 

(b)(1) No agency performing functions under this Act shall, in 
employing or assigning personnel to participate in the performance 
of any such function, whether in the United States or abroad, take 
into account the exclusionary polices or practices of any foreign gov- 
ernment where such policies or practices are based upon race, religion, 
national origin, or sex. 

(2) Each contract entered into by any such agency for the per- 
formance of any function under this Act shall contain a provision to 
the effect that no person, partnership, corporation, or other entity per- 
forming functions pui*suant to such contract, shall, in employing or 
assigning personnel to participate in the performance of any such 
function, whether in the United States or abroad, take into account 
the exclusionary policies or practices of any foreign government where 
such policies or practices are based upon race, religion, national origin, 
or sex. 

(c) The President shall promptly transmit reports to the Speaker 
of the House of Representatives and the chainnan of the Committee 
on Foreign Relations of the Senate concerning any instance in which 
any United States person (as defined in section 7701(a) (30) of the 
Internal Revenue Code of 1954) is prevented by a foreign govern- 
ment on the basis of race, religion, national origin, or sex, from par- 
ticipating in the performance of any sale or licensed transaction under 
this Act. Such reports shall include (1) a description of the facts and 
circumstances of any such discrimination, (2) the response thereto on 
the part of the ITnited States or any agency or employee thereof, and 
(3) the result of such response, if any. 

(d) (1) Upon the request of the Committee on Foreign Relations of 
the Senate or the Committee on International Relations of the House 
of Representatives, the President shall, within 60 days after receipt of 
such request, transmit to both such committees a statement, prepared 
with the assistance of the Assistant Secretary of State ^^ for Human 
Rights and Humanitarian Affairs, with respect to the country desig- 
nated in such request, setting forth — 

(A) all the available information about the exclusionary pol- 
icies or practices of the government of such country when such 
policies or practices are based upon race, religion, national origin 
or sex and prevent any such person from participating in the 
performance of any sale or licensed transaction under this Act; 

(B) the response of the United States thereto and the results 
of such response ; 

(C) whether, in the opinion of the President, notwithstanding 
any such policies or practices — 

(i) extraordinary circumstances exist which necessitate a 
continuation of such sale or licensed transaction, and, if so, 
a description of such circumstances and tlie extent to which 
such sale or licensed transaction should be continued (subject 
to such conditions as Congress may impose under this sec- 
tion), and 



2* Sec. 109(a) (6) of the Foreign Relations Authorization Act. Fiscal Year 1978 (91 Stat. 
846) substituted the words "Assistant Secretary of State" in lieu of "Coordinator." 



281 

(ii) on all the facts it is in the national interest of the 
United States to continue such sale or licensed transaction; 
and 
(D) such other information as such committee may request. 

(2) In the event a statement with respect to a sale or licensed 
transaction is requested pursuant to paragraph (1) of this subsection 
but is not transmitted in accordance thercAvith within 60 days after 
receipt of such request, such sale or licensed transaction shall be 
suspended unless and until such statement is transmitted. 

(3) (A) In the event a statement with respect to a sale or licensed 
transaction is transmitted under paragraph (1) of this subsection, the 
Congress may at any time thereafter adopt a joint resolution termi- 
nating or restricting such sale or licensed transaction. 

(B) Any such resolution shall be considered in the Senate in ac- 
cordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

(C) The term "certification", as used in section 601 of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under paragraph ( 1 ) of this subsection. 

Chapter 2— FOREIGN MILITARY SALES AUTHORIZATIONS 

Sec. 21.25 g^LEs From Stocks. — (a) The President may sell defense 
articles and defense services from the stocks of the Department of 
Defense to any eligible country or international organization if such 
country or international organization agrees to pay in United States 
dollars — 

(1) in the case of a defense article not intended to be replaced 
at the time such agreement is entered into, not less than the actual 
value thereof ; ^^ 

(2) in the case of a defense article intended to be replaced 
at the time such agreement is entered into, the estimated cost of 
replacement of such article, including the contract or production 
costs less any depreciation in the value of such article ; or 

(3) in the case of the sale of a defense service, the full cost 
to the United States Government of furnishing such service. 

(b) Except as provided by subsection (d) of this section, payment 
shall be made in advance or, if the President determines it to be in the 
national interest, upon delivery of the defense article or rendering of 
the defense service. 

(c) Personnel performing defense services sold under this Act 
may not perform any duties of a combatant nature, including any 
duties related to training, advising, or otherwise providing assistance 



25 22 use 2761. Sec. 205 of the International Security Assistance and Arms Export 
Control Act of 1976 amended Sec. 21 which formerly read as follows : 

"Sec. 21. Cash Sales From Stock. — The President may sell defense articles from the 
stocks of the Department of Defense and defense services of the Department of Defense to 
any friendly country or international organization if such country or international 
organization agrees to pay not less than the value thereof in United States dollars. Pay- 
ment shall be made in advance or. as determined by the President to be in the best 
interests of the United States, within a reasonable period not to exceed one hundred and 
twenty days after the delivery of the defense articles or the rendering of the defense 
services." 

2« Department of Defense Appropriations Act, 1978 (91 Stat. 908) stipulated that no 
funds provided under that Act would be "available for the planning or execution of pro- 
grams which utilize amounts credited, during the current fiscal year, to Department of De- 
fense appropriations or funds pursuant to the provisions of section 37(a) of the Arms 
Export Control Act representing payment for the actual value of defense articles specified 
in section 21(a)(1) of that Act: Provided, That such amounts so credited shall be de- 
posited in the Treasury as miscellaneous receipts as provided In 31 U.S.C. 484." 



20-818 O - 78 



282 

regarding combat activities, outside the United States in connection 
with the performance of those defense services. 

(d) If the President determines it to be in the national interest 
pursuant to subsection (b) of this section, billings for sales made 
under letters of offer issued under this section after the enactment of 
this subsection may be dated and issued upon delivery of the defense 
article or rendering of the defense service and shall be due and payable 
upon receipt thereof by the purchasing country or international orga- 
nization. Interest shall be charged on any net amount due and payable 
which is not paid within sixty days after the date of such billing. The 
rate of interest charged shall be a rate not less than a rate determined 
by the Secretary of the Treasury taking into consideration the current 
average market yield on outstanding short-term obligations of the 
United States as of the last day of the month preceding the billing 
and shall be computed from the date of billing. The President may 
extend such sixty-day period to one hundred and twenty days if he 
determines that emergency requirements of the purchaser for acquisi- 
tion of such defense articles or defense services exceed the ready 
availability to the purchaser of funds sufficient to pay the United 
States in full for them within such sixty-day period and submits that 
determination to the Congress together with a special emergency 
request for the authorization and appropriation of additional funds to 
finance such purchases under this Act. 

(e) (1) After September 30, 1976, letters of offer for the sale of 
defense articles or for the sale of defense services that are issued pur- 
suant to this section or pursuant to section 22 of this Act shall include 
appropriate charges for — 

(A) administrative services, calculated on an average per- 
centage basis to recover the full estimated costs of administration 
of sales made under this Act to all purchasers of such articles and 
services ; 

(B) any use of plant and production equipment in connection 
with such defense articles; and 

(C) a proportionate amount of any nonrecurring costs of re- 
search, development, and production of major defense equipment. 

(2) The President may reduce or waive the charge or charges which 
would otherwise be considered appropriate under paragraphs (1) (B) 
and (1) (C) for particular sales that would, if made, significantly ad- 
vance United States Government interests in North Atlantic Treaty 
Organization standardization, or foreign procurement in the United 
States under coproduction arrangements. 

(f ) Any contracts entered into between the United States and a for- 
eign country under the authority of this section or section 22 of this 
Act shall be prepared in a manner which will permit them to be made 
available for public inspection to the fullest extent possible consistent 
with the national security of the United States. 

(g) In carrying out section 814 of the Act of October 7, 1975 (Public 
Law 94—106), the President may enter into North Atlantic Treaty 
Organization standardization agreements for the cooperative furnish- 
ing of training on a bilateral or multilateral basis, if the financial 
principles of such agreements are based on reciprocity. Such agree- 
ments shall include reimbursement for all direct costs but may exclude 
reimbursement for indirect costs, administrative surcharges, and costs 
of billeting of trainees (except to the extent that members of the 



283 

United States Armed Forces occupying comparable accommodations 
are charged for such accommodations by the United States). Each 
such agreement shall be transmitted promptly to the Speaker of the 
House of Representatives and the Committees on Appropriations, 
Armed Services, and Foreign Relations of the Senate. 

(h)27 (1) Sales of defense articles and defense services which could 
have significant adverse effect on the combat readiness of the Armed 
Forces of the United States shall be kept to an absolute minimum. 
The President shall transmit to the Speaker of the House of Repre- 
sentatives and the Committees on Armed Services and Foreign Rela- 
tions of the Senate on the same day a written statement giving a 
complete explanation with respect to any proposal to sell, under this 
section, any defense articles or defense services if such sale could have 
a significant adverse effect on the combat readiness of the Armed 
Forces of the United States.^* Each such statement shall be unclassified 
except to the extent that public disclosure of any item of information 
contained therein would be clearly detrimental to the security of the 
United States. Any necessarily classified informaion shall be con- 
fined to a supplemental report. Each such statement shall include an 
explanation relating to only one such proposal to sell and shall set 
forth— 

(A) the countr}^ or international organization to which the sale 
is proposed to be made ; 

(B) the amount of the proposed sale; 

(C) a description of the defense article or service proposed to be 
sold; 

(D) a full description of the impact which the proposed sale 
will have on the Armed Forces of the United States ; and 

(E) a justification for such proposed sale, including a certifica- 
tion that such sale is important to the security of the United 
States. 

A certification described in subparagraph (E) shall take effect on the 
date on which such certification is transmitted and shall remain in 
effect for not to exceed one year. 

(2) No delivery may be made under any sale which is required to 
be reported under paragraph ( 1 ) of this subsection unless the certifica- 
tion required to be transmitted by paragraph (E) of paragraph (1) 
is in effect. 

Sec. 22.2® Procurement for Cash Sales. — (a) Except as otherwise 
provided in this section, the President may, without requirement for 

^ Subsection (h) was added by Sec. 206 of the International Security Assistance and 
Arms Export Control Act of 1976. 

An additional reporting requirement regarding the Impact of sales or transfers of defense 
articles from the United States active forces inventories is contained in Sec. 813 of the 
Department of Defense Appropriation Authorization Act, 1976 (Public Law 94-106). See 
page 326. for text. 

28 22 use 2762. Sec. 25(3) of the FAAct of the 1973 amended Sec. 22. which formerly 
read as follows : 

"Sec. 22. Procurement for Cash Sales. — The President may, without requirement for 
charge to any appropriation or contract authorization otherwise provided, enter into 
contracts for the procurement of defense articles or defense services for sale for United 
States dollars to any friendly country or international organization if such country or 
international organization provides the United States Government with a dependable under- 
taking (1) to pay the full amount of such contract which will assure the United States 
Government against any loss on the contract, and (2) to make funds available in such 
amounts and at such times as may be required to meet the payments required by the 
contract, and any damages and costs that may accrue from the cancellation of such 
contract, in advance of the time such payments, damages, or costs are due : Provided, 
That the President may, when he determines it to be in the national Interest accept a 
dependable undertaking to make full payment within one hundred and twenty days after 

(Continued) 



284 

charge to any appropriation or contract authorization otherwise pro- 
vided, enter into contracts for the procurement of defense articles or 
defense services for sale for United ^States dollars to any torei^ 
country or international organization if such country or inter- 
national organization provides the United States Government with 
a dependable undertaking (1) to pay the full amount of such con- 
tract which will assure the United States Grovernment against any 
loss on the contract, and (2) to make funds available in such amounts 
and at such times as may be required to meet the payments required 
by the contract and any damages and costs that may accrue from the 
cancellation of such contract, in advance of the time such payments, 
damages, or costs are due. interest snaii be ciiargeu on any net amount 
by which any such country or international organization is in arrears 
under all of its outstanding unliquidated dependable undertakings, 
considered collectively. The rate of interest charged shall be a rate not 
less than a rate determined by the Secretary of the Treasury taking 
into consideration the current average market yield on outstanding 
short-tenn obligations of the United States as of the last day of the 
month preceding the net arrearage and shall be computed from the 
date of net arrearage.^^ 

(b) The President may, if he determines it to be in the national in- 
terest, issue letters of oflFer under this section which provide for billing 
upon delivery of the defense article or rendering of the defense serv- 
ice and for payment within one hundred and twenty days after the 
date of billing. This authority may be exercised, however, only if 
the President also determines that the emergency requirements of the 
purchaser for acquisition of such defense articles and services exceed 
the ready availability to the purchaser of funds sufficient to make pay- 
ments on a dependable undertaking basis and submits both determina- 
tions to the Congress together with a special emergency request for 
authorization and appropriation of additional funds to finance such 
purchases under this Act.^° Appropriations available to the Depart- 

(Contlnued) 

delivery of the defense articles, or the rendering of the defense services, and appropria- 
tions available to the Department of Defense may be used to meet the payments required 
by the contracts and shall be reimbursed by the amounts subsequently received from the 
country or international organization : Provided further. That the President may, when 
he determines It to be in the national Interest, enter Into sales agreements with pur- 
chasing countries or international organizations which fix prices to be paid by the pur- 
chasing countries or international organizations for the defense articles or defense serv- 
ices ordered. Funds made available under section 31 for financing sales shall be used to 
reimburse the applicable appropriations In the amounts required by the contracts which 
exceed the price so fixed, except that such reimbursement shall not be required upon 
determination by the President that the continued production of the defense article being 
sold is advantageous to the Armed Forces of the United States. Payments by purchasing 
countries or international organizations which exceed the amounts required by such 
contracts shall be transferred to the general fund of the Treasury. To the maximum ex- 
tent possible, prices fixed under any such sales agreement shall be sufilcient to reimburse 
the United States for the cost of defense articles or defense services ordered. The Presi- 
dent shall submit to the Congress promptly a detailed report concerning any fixed-price 
sales agreement under which the aggregate cost to the United States exceeds the aggregate 
amount required to be paid by the purchasing country or international organization. No 
sales of unclassified defense articles shall be made to the government of any economically 
developed nation under the provisions of this section unless such articles are not gener- 
ally available for purchase by such nations from commercial sources in the United States : 
Provided, however. That the President may waive the provisions of this sentence when 
he determines that the waiver of such provisions is in the national interest." 

2» The words bperlnninfir with "Interest shall be charged on any net amount . . ." were 
added bv Sec. 207(a) of the International Security Assistance and Arms Export Control 
Act of 1976. 

30 Sec. 207(b) of the International Security Assistance and Arms Export Control Act of 
1976 amended Subspction Cb^ bv st'-i'^'ing o"t the first sentence pnd adding in lieu thereof 
the words to this point. The first sentence of Subsection (b) formerly read as follows : 

"(b) The President may. when he determines it to be in the national interest, accept a 
dependable undertaking of a foreign country or international organization with resnect to 
any such sale, to make full payment within 120 days after delivery of the defense articles 
or the rendering of the defense services." 



285 

ment of Defense may be used to meet the payments required by the 
contracts for the procurement of defense articles and defense services 
and shall be reimbursed by the amounts subsequently received from 
the country or international organization to whom articles or services 
are sold. 

Sec. 23.^^ Credit Sales. — The President is authorized to J&nance pro- 
curements of defense articles and defense services by friendly for- 
eign countries and international organizations on terms requiring the 
payment to the United States Government in United States dollars 
of— 

(1) the value of such articles or services within a period not 
to exceed twelve years ^^ after the delivery of such articles or 
the rendering of such services ; and 

(2) interest on the unpaid balance of that obligation for pay- 
ment of the value of such articles or services, at a rate equivalent 
to the current average interest rate, as of the last day of the 
month preceding the financing of such procurement, that the 
United States Government pays on outstanding marketable obli- 
gations of comparable maturity, unless the President certifies to 
Congress that the national interest requires a lesser rate of interest 
and states in the certification the lesser rate so required and the 
justification therefor. 

Sec. 24.^^ Guaranties. — (a) The President may guarantee any 
individual, corporation, partnership, or other juridical entity doing 
business in the United States (excluding United States Government 
agencies other than the Federal Financing Bank)^* against political 
and credit risks of nonpayment arising out of their financing of credit 
sales of defense articles and defense services to friendly countries and 
international organizations. Fees shall be charged for such guaranties. 

(b) The President may sell to any individual, corporation, partner- 
ship, or other juridical entity (excluding United States Government 
agencies other than the Federal Financing Bank) ^* promissory notes 
issued by friendly countries and international organizations as evi- 
dence of their obligations to make repayments to the United States 
on account of credit sales financed under section 23, and may guarantee 
payment thereof. 

(c) Funds made available to carry out this Act ^^ shall be obligated 
in an amount equal to 10 ^^ per centum of the principal amount of ^^ 
contractual liability related to any guaranty issued under this section, 
and all the funds so obligated shall constitute a single reserve for the 
payment of claims under such guaranties. Any funds so obligated 

3122 use 2763. Sec. 45(a)(2) of the FAAct of 1974 amended Sec. 23. which formerly 
read as follows : "Sec. 23. Credit Sales. — The President is hereby authorized to finance 
procurements of defense articles and defense services by friendly countries 'and Interna- 
tional organizations on terms of repayment to the United States Government of not less 
than thp value thereof in the United States dollars within a period of not to exceed ten 
years after the delivery of the defense articles or the rendering of the defense services." 

32 Sec. 208('a) of the International Security Assistance and Arms Export Control Act of 
1976 substituted "twelve years" in lieu of "ten years". See 208(b) of the same Act went 
on to say. "The amendment made by subsection (a) shall apply with respect to financing 
under agreements enter*^'^ into on o*- aftpr the dafp of enactment of this Act for the pro- 
curement of defense articles to be delivered, or defense services to be rendered, after such 
date. 

w 22 use 2764. 

3* Sec. 45(a)(3) of the FAAct of 1974 suhstitnted the words "(excluding United States 
Government agencies other than the Federal Financing Bank)" In lieu of "(excluding 
Upltpfi Sts^tes Government agencies)". 

33 Sec. 25(4) (A) of the FAAct of 1973 substituted the words "to carry out this Act" 
In lieu of "pursuant to section 31". 

38 Sec. 45(a)(4) of the FAAct of 1974 substituted "10" in lieu of "25". 

37 The words "principal amount of" were added by Sec. 25(4) (B) of the FAAct of 1973. 



286 

which are deobli^ated from time to time diirinjij any current fiscal 
year as bein^ in excess of the amount necessary to maintain a frac- 
tional reserve of 10 ^^ per centum of the principal amount of ^^ con- 
tractual liability under outstanding guaranties shall be transferred to 
the general fund of the Treasury. Any guaranties issued hereunder 
shall be backed by the full faith and credit of the United States.^® 



Note. — The change effected by the amendment to section 24(c) 
(see footnote 36) was retroactive to July 1, 1974. Obligations 
initially charged against appropriations made available for pur- 
poses authorized by section 31(a) of the Foreign Military Sales 
Act after June 30, 1974, and prior to the enactment of this section 
in an amoimt equal to 25 per centum of the principal amount of 
contractual liability related to guaranties issued pui*suant to sec- 
tion 24(a) of that Act are required to be adjusted to reflect this 
amendment with proper credit to the appropriations made avail- 
able in the fiscal year 1975 to carry out that Act. (Sec. 45(b) of 
theFAActof 1974.) 



Sec. 25.^^ Annual Estimate and Justification for Sales Pro- 
gram. — (a) The President shall transmit to the Congress, as a part of 
the presentation materials for security assistance programs proposed 
for each fiscal year, a report which sets forth — 

(1) an estimate of the amount of sales expected to be made to 
each country under sections 21 and 22 of this Act, including a 
detailed explanation of the foreign policy and United States 
national security considerations involved in expected sales to each 
country ; 

(2) an estimate of the amount of credits and guaranties ex- 
pected to be extended to each country under sections 23 and 24 
of this Act ; 

(3) a list of all findings which are in effect on the date of such 
transmission made by the President pursuant to section 3(a) (1) 
of this Act, together with a full and complete justification for each 
such finding, explaining how sales to each country with respect 
to which such findings has been made will strengthen the security 
of the United States and promote world peace ; and 

(4) an arms control impact statement for each purchasing 
country, including (A) an analysis of the relationship between 
expected sales to each country and arms control efforts relating 
to that country, and ( B ) the impact of such expected sales on the 
stability of the region that includes the purchasing country. 

(b) Not later than thirty days following the receipt of a request 
made by the Committee on Foreign Relations of the Senate or the 
Committee on International Relations of the House of Representatives 
for additional information wath respect to any estimate submitted 

38 Sec. 1(a) (4) of Public Law 94-534 provides $12,000,000 for guaranties under Sec. 24 
to be available for obligation and expenditure to carry out the Treaty of Friendship and 
Cooperation between the United States and Spain for fiscal year 1977, as authorized under 
Sec. 507 of the International Security Assistance and Arms Export Control Act of 1976, 

3*22 use 2765. Sec. 25 was added by Sec. 209(a) of the International Security Assist- 
ance and Arms Export Control Act of 1976. 



287 

pursuant to subsection (a), the President shall submit such informa- 
tion to such committee. 

(c) The President shall make every effort to submit all of the infor- 
mation required by this section wholly in unclassified form. In the 
event the President submits any such information in classified form, 
he shall submit such classified information in an addendum and shall 
also submit simultaneously a detailed summary, in unclassified form, 
of such classified information. 

CHAPTER 3— MILITARY EXPORT CONTROLS 

Sec. 31.*° Authorization and Aggregate Ceiling on Foreign Mili- 
tary Sales Credits. — (a) There is hereby authorized to be appropri- 
ated to the President to carry out this Act $677,000,000 for the fiscal 
year 1978.*^ Unobligated balances of funds made available pursuant 
to this section are hereby authorized to be continued available by ap- 
propriations legislation to carry out this Act. 

(b)42 xhe aggregate total of credits, or participations in credits, ex- 
tended pursuant to this Act and of the principal amount of loans 
guaranteed pursuant to section 24(a) shall not exceed $2,102,350,000, 
for the fiscal year 1978, of which not less than $1,000,000,000 shall be 
available only for Israel.'^^ 

(c)** Funds made available for the fiscal year 1978 under sub- 
section (a) of this section shall be obligated to finance the pro- 
curement of defense articles and defense services by Israel on a long- 
term repayment basis either by the extension of credits, without regard 
to the limitations contained in section 23, or by the issuance of guar- 
anties under section 24. Repayment shall be in not less than twenty 
years, following a grace period of ten years on repayment of prin- 
cipal. Israel shall be released from one-half of its contractual liability 
to repay the United States Government with respect to defense articles 
and defense services so financed for such year. 

(d) The aggregate acquisition cost to the United States of excess 
defense articles ordered by the President in any fiscal year after fiscal 

«>22 use 2771. 

*^ Figures for fiscal year 1978 were added by Sec. 19 of the International Security Assist- 
ance Act of 1977 (91 Stat. 623). Past figures authorized under Sec. 31(a) are as follows: 
FY 1969— $269,000,000 ; FY 1970— $250,000,000 ; FY 1971— $250,000,000 ; FY 1972— 
$400,000,000 ; FY 1974 — $325,000,000 ; FY 1975— $405,000,000 ; FY 1976— $1,039,000,000 ; 
FY 1977— $740,000,000. 

FA Appropriations, 1978 states : 

"For expenses not otherwise provided for, necessary to enable the President to carry 
out the provisions of sections 23 and 24 of the Arms Export Control Act. $675,850,000 : 
Provided, That of the amount provided for the total aggregate credit sale celling during the 
current fiscal year, not less than $1,000,000,000 shall be allocated to Israel." 

*2 Sec. 210(b) of the International Security Assistance and Arms Export Control Act of 
1976 amended Subsection (b) which formerly read as follows : 

"(b) The aggregate total of credits, or participations in credits, extended pursuant to this 
Act and of the principal amount of loans guaranteed pursuant to section 24(a) shall not 
exceed $872,500,000 for the fiscal year 1975 of which amount not less than $300,000,000 
shall be available to Israel only. Of the funds made available under subsection (a) of this 
section, $100,000,000 shall first be obligated with respect to financing the procurement of 
defense articles and defense services by Israel under section 23 of this Act, except that 
Israel shall be released from contractual liability to repay the United States Government 
for the defense articles and defense services so financed." 

*3The figures for fiscal year 1978 were added by Sec. 19(2) of the International Security 
Assistance Act of 1977 (91 Stat. 623). Past amounts authorized under Sec. 31(b) are as 
follows : FY 1969 — $296.000000 ; FY 1970 — $340 000,000 ; FY 1971 — $'340,000,000 ; FY 
1972 — $5.50,000,000 : FY 1974 — $730,000,000 ; FY 1975 — $872,500,000 ; FY 1976 — 
$2,374,700,000 ; FY 1977 — $2,022,100,000. 

** Subsections (c) and (d) were added bv Sec. 210(c)(1) of the International Security 
Assistance and Arms Export Control Act of 1976. Sec. 19(3) of the International Security 
Assistance Act of 1977 (91 Stat. 623) substituted "the fiscal year 1978" in lieu of "the 
fiscal years 1976 and 1977" in the first sentence of subsection (c). 



288 

year 1976 for delivery to foreign countries or international organiza- 
tions under the authority of chapter 2 of part II of the Foreign 
Assistance Act of 1961 or pursuant to sales under this Act may not 
exceed $100,000,000 (exclusive of ships and their on-board stores and 
supplies transferred in accordance with law). 

Sec. 82.*^ Proiiiritiox Against Ceriaix Military Export Financ- 
ing BY Export-Import Bank. — Notwithstanding any other provision 
of law, no funds or borrowing authority available to the Export-Im- 
port Bank of the United States shall be used by such Bank to partici- 
pate in any extension of credit in connection with any agreement to 
sell defense articles and defense services entered into with any eco- 
nomically less developed country after June 30, 1968. 

Sec. 33.''*' Rfxjional Ceilings on Foreign Military Sales. — (a)*^ *^ 
The aggregate of the total amount of military assistance pursuant to 
the Foreign Assistance Act of 1961, as amended,*® of credits, or partici- 
pations in credits, financed pursuant to section 23, of the principal 
amount of loans guaranteed pursuant to section 24(a), ^° shall, exclud- 
ing training, not exceed $40,000,000 in each fiscal year for African 
countries. 

(b)^^ The President may waive the limitations of this section when 
he determines it to be important to the security of the United States 
and promptly so reports to the Speaker of the House of Representa- 
tives and the Committee on Foreign Relations of the Senate. 

(c)" * * * [Repealed— 1973] 

Sec. 34." Foreign Military Sales Credit Standards. — The Presi- 
dent shall establish standards and criteria for credit and guaranty 
transactions under sections 23 and 24 in accordance with the foreign, 
national security, and financial policies of the United States. 

Sec. 35.°* Foreign Military Salf^ to Less Developed Countries. — 
(a) When the President finds that any economically less developed 
country is diverting development assistance furnished pursuant to the 
Foreign Assistance Act of 1961, as amended, or sales under the Agri- 
cultural Trade Development and Assistance Act of 1954, as amended, 
to military expenditures, or is diverting its own resources to unneces- 
sary military expenditures, to a degree which materially interferes 
with its development, such country shall be immediately ineligible for 
further sales and guarantees under sections 21, 22, 23, and 24, until the 
President is assured that such diversion will no longer take place. 

(h)'' * * * [Repealed— 1974] 



«22 use 2772. 

«22 use 2773. 

^'^ Sec. 45(a)(8)(A) of the FAAct of 1974 repealed former subsection (a) which read 
as follows: "(a) The aggregate of the total amount of military assistance pursuant to 
the Foreign Assistance Act of 1961, as amended, of credits, or participation in credits, 
financed pursuant to section 23 of the principal amount of loans guaranteed pursuant to 
section 24(a), and loans and sales in accordance with section 7307 of title 10, United 
States Code, shall, excluding training, not exceed $150,000,000 In each fiscal year for 
Latin American countries." 

*8 Sec. 45(a) (8) (B) of the FAAct of 1974 redesignated subsection (b) as subsection (a). 

" The words "of cash sales pursuant to sections 21 and 22," which appeared at this 
point, were struck out by Sec. 25(8) (A) of the FAAct of 1973. 

^The words "of the principal amount of loans guaranteed pursuant to section 24(a)" 
were substituted in lien of "(excluding credits covered by guaranties issued pursuant to 
section 24 (b) ) of the face amount of contracts of guaranty issued pursuant to sections 
24(a) and (b)" by Sec. 25(8) (B) of the FAAct of 1973. 

51 New subsection (b) was added by Sec. 45(a)(8)(e) of the FAAct of 1974. 

''^ Subsection (c) which related to non-waiver of limitations of the section was re- 
pealed by Sec. 25(9) of the FAAct of 1973. 

" 22 use 2774. 

" 22 use 2775. 

6s Subsection (b) was repealed by Sec. 45(a) (5) of the FAAct of 1974. 



289 

Sec. 36.^^ Reports ox Commercial and Goverxmentai. ]\Iilitary 
Exports; Coxgressioxal Actiox. — (a) The President shall transmit 
to the Speaker of the House of Representatives and to the chairman of 
the Committee on Foreign Relations of the Senate not more than 
thirty days after the end of each quarter an unclassified report (except 
that any material which was transmitted in classified form under 
subsection (b) (1) or (c) (1) of this section may be contained in a 
classified addendum to such report, and any letter of offer referred to 
in paragraph (1) of this subsection may be listed in such addendum 
unless such letter of offer has been the subject of an unclassified cer- 
tification pursuant to subsection (b) (1) of this section) containing — 

(1) a listing of all letters of offer to sell any major defense 
equipment for $1,000,000 or more under this Act to each foreign 
country and international organization, by category, if such let- 
ters of offer have not been accepted or cancelled ; 

(2) a listing of all such letters of offer that have been accepted 
during the fiscal year in which such report is submitted, together 
with the total value of all defense articles and defense services 
sold to each foreign country and international organization dur- 
ing such fiscal year ; 

(3) the cumulative dollar amounts, by foreign country and 
international organization, of sales credit agreements under sec- 
tion 23 and guaranty agreements under section 24 made during 
the fiscal year in which such report is submitted ; 

(4) a numbered listing of all licenses and approvals for the 
export to each foreign country and international organization 
during such fiscal year of commercially sold major defense equip- 



"22 use 2776, Sec. 211(a) of the International Security Assistance and Arms Export 
Control Act of 1976 amended Sec. 36 which formerly read as follows : 
"Sec. 36. Reports on Commercial and Governmental Military Exports. — 

(a) The President shall submit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the Senate quarterly reports 
containing — 

(1) a listing of all letters of offer to sell any defense articles or services under this 
Act. if such offer has not been accepted or canceled ; 

(2) a cumulative listing of all such letters of offer to sell that have been accepted 
during the fiscal year in which such report Is submitted ; 

(3) the cumulative dollar amounts, by foreign country and international organiza- 
tion, of credit sales under section 23 and guaranty agreements under section 24 made 
before the submission of such quarterly report and during the fiscal year In which 
such report Is submitted ; and 

(4) projections of the cumulative dollar amounts, by foreign country and inter- 
national organization, of credit sales under section 23 and guaranty agreements under 
section 24 to be made in the quarter of the fiscal year immediately following the 
quarter for which such report is submitted. 

For each letter of offer to sell under paragraphs (1) and (2). the report shall specify 
(A) the foreign country or international organization to which the defense article or serv- 
ice is offered. (B) the dollar amount of the offer to sell under paragraph (1) or of the 
completed sale under paragraph (2). (C) a brief description of the defense article or 
service offered, (D) the United States armed force which is making the offer to sell, (E) 
the date of such offer, and (F) the date of any acceptance under paragraph (2). 

(b) In the case of any letter of offer to sell anv defense articles or services under this 
Act for $25,000,000 or more, before issuing such letter of offer the President shall submit 
to the Speaker of the House of Representatives and to the Chairman of the Committee on 
Foreign Relations of the Senate a statement with respect to such offer to sell containing 
the Information specified In subparagraphs (A) through (E) In subsection (a). The letter 
of offer shall not be Issued If the Congress, within twentv calendar davs after receiving 
any such statement, adopts a concurrent resolution stating In effect that It objects to 
such proposed sale, unless the President in his statement certifies that an emergency 
exists which requires such sale In the national securltv interests of the United States. 

(c) Nothing In this section shall be construed as modifving In anv wav the provisions 
of section 414 of the Mutual Security Act of 1954, as amended, relating to munitions 
control." 

Sec. 211(b) of the same Act further stated: "The amendment made bv subsection 
(a) of this section shall apply with respect to letters of offer for which a certification is 
transmitted pursuant to section 36(b) of the Arms Export Control Act on or after the 
date of enactment of this Act and to export licenses for which an application is filed under 
section 38 of such Act on or after such date." 



290 

ment, by category, sold for $1,000,000 or more, together with the 
total value of all defense articles and defense services so licensed 
for each foreign country and international organization, setting 
forth, with respect to the listed major defense equipment — 

(A) the items to be exported under the license, 

(B) the quantity and contract price of each such item to 
be furnished, and 

(C) the name and address of the ultimate user of each such 
item; 

(5) projections of the dollar amounts, by foreign country and 
international organization, of cash sales expected to be made under 
sections 21 and 22, credits to be extended under section 23, and 
guaranty agreements to be made under section 24 in the quarter 
of the fiscal year immediately following the quarter for which such 
report is submitted ; 

(6) a projection with respect to all cash sales expected to be 
made and credits expected to be extended to each country and 
organization for the remainder of the fiscal year in which such 
report is transmitted ; 

(7) an estimate of the number of officers and employees of the 
United States Government and of United States civilian contract 
personnel present in each such country at the end of that quarter 
for assignments in implementation of sales and commercial ex- 
ports under this Act ; 

(8)" a description of each payment, contribution, gift, com- 
mission, or fee reported to the Secretary of State under section 39, 
including (A) the name of the person who made such payment, 
contribution, gift, commission, or fee; (B) the name of any sales 
agent or other person to whom such payment, contribution, gift, 
commission, or fee was paid; (C) the date and amount of such 
payment, contribution, gift, commission, or fee; (D) a descrip- 
tion of the sale in connection with which such payment, contribu- 
tion, gift, commission, or fee was paid; and (E) the identification 
of any business information considered confidential by the person 
submitting it which is included in the report; and 

(9)^' an analysis and description of the services being per- 
formed by officers and employees of the United States Govern- 
ment under section 21(a) of this Act, including the number of 
personnel so employed. 
For each letter of offer to sell under paragraphs (1) and (2), the 
report shall specify (i) the foreign country or international organiza- 
tion to which the defense article or service is offered or was sold, as the 
case may be : (ii) the dollar amount of the offer to sell or the sale and 
the number of defense articles offered or sold, as the case may be ; (iii) 
a description of the defense article or service offered or sold, as the 
case may be ; and (iv) the United States Armed Forces or other agency 
of the United States which is making the offer to sell or the sale, as 
the case may be. 

'^" Sec. 604(a) of the International Security Assistance and Arms Export Control Act 
of 1976 redesignated paragraph (8) as paragraph (9) and inserted a new paragraph (8) 
Immediatelj- after paragraph (7). Sec. 604(c) of the same Act stated that paragraph (8) 
would "take effect sixty days after the date of enactment of this Act." (l.e. August 29, 
1976). 



291 

(b) (1) In the case of any letter of offer to sell any defense articles 
or services under this Act for $25,000,000 or more, or any major 
defense equipment for $7,000,000 or more, before such letter of offer 
is issued, the President shall submit to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign Re- 
lations of the Senate a numbered certification with respect to such offer 
to sell containing the information specified in clauses (i) through (iv) 
of subsection (a) and a description, containing the information speci- 
fied in paragraph (8) of subsection (a), of any contribution, gift, 
commission, or fee paid or offered or agreed to be paid in order to 
solicit, promote, or otherwise to secure such letter of offer. In addi- 
tion, the President shall, upon the request of such committee or the 
Committee on International Relations of the House of Representa- 
tives, transmit promptly to both such committees a statement setting 
forth, to the extent specified in such request — 

(A) a detailed description of the defense articles or services 
to be offered, including a brief description of the capabilities of 
any defense article to be offered ; 

(B) an estimate of the number of officers and employees of 
the United States Government and of United States civilian con- 
tract personnel expected to be needed in such country to carry 
out the proposed sale ; 

(C) the name of each contractor expected to provide the de- 
fense article or defense service proposed to be sold (if known on 
the date of transmittal of such statement) ; 

(D) an analysis of the arms control impact pertinent to such 
offer to sell, prepared in consultation with the Secretary of 
Defense ; 

(E) the reasons why the foreign country or international orga- 
nization to which the sale is proposed to be made needs the defense 
articles or services which are the subject of such sale and a de- 
scription of how such country or organization intends to use such 
defense articles or services ; 

(F) an analysis by the President of the impact of the proposed 
sale on the military stocks and the military preparedness of the 
United States ; 

(G) the reasons why the proposed sale is in the national inter- 
est of the United States ; 

(H) an analysis by the President of the impact of the pro- 
posed sale on the military capabilities of the foreign country 
or international organization to which such sale would be made ; 

(I) an analysis by the President of how the proposed sale 
would affect the relative military strengths of countries in the 
region to which the defense articles or services which are the 
subject of such sale would be delivered and whether other coun- 
tries in the region have comparable kinds and amounts of defense 
articles or services ; 

(J) an estimate of the levels of trained personnel and main- 
tenance facilities of the foreign country or international organiza- 
tion to which the sale would be made which are needed and 
available to utilize effectively the defense articles or services 
proposed to be sold ; 



292 

(K) an analysis of the extent to which comparable kinds and 
amounts of defense articles or services are available from other 
countries ; 

(L) an analysis of the impact of the proposed sale on United 
States relations with the countries in the region to which the 
defense articles or services which are the subject of such sale 
would be delivered ; and 

(M) a detailed description of any agreement proposed to be 
entered into by the United States for the purchase or acquisition 
by the United States of defense articles, services, or equipment, 
or other articles, services, or equipment of the foreign country or 
international organization in connection with, or as considera- 
tion for, such letter of offer, including an analysis of the impact of 
such proposed agreement upon United States business concerns 
which might otherwise have provided such articles, services, or 
equipment to the United States, an estimate of the costs to be 
incurred by the United States in connection with such a^i^reement 
compared with costs which would otherwise have been mcurred, 
an estimate of the economic impact and unemployment which 
would result from entering into such proposed agreement, and 
an analysis of whether such costs and such domestic economic 
impact justify entering: into such proposed agreement. 
A certification transmitted pursuant to this subsection shall be un- 
classified, except that the information specified in clause (ii) and the 
details of the description specified in clause (iii) of subsection (a) 
may be classified if the public disclosure thereof would be clearly 
detrimental to the security of the United States. The letter of offer 
shall not be issued if the Congress, within thirty calendar days after 
receiving such certification, adopts a concurrent resolution stating 
rliat it objects to the proposed sale, unless the President states in his 
certification that an emergency exists which requires such sale in the 
national security interests of the United States. 

(2) Any such resolution shall be considered in the Senate in ac- 
cordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 

(3) For the purpose of expediting the consideration and adoption 
of concurrent resolutions under this subsection, a motion to proceed 
to the consideration of any such resolution after it has been reported 
by the appropriate committee shall be treated as highly privileged 
in the House of Representatives. 

(c) In the case of an application by a person (other than with re- 
gard to a sale under section 21 or section 22 of this Act) for a license 
for the export of any major defense equipment sold under a contract 
in the amount of $7,000,000 or more or of defense articles or defense 
services sold under a contract in the amount of $25,000,000 or more, 
not less than 30 days before issuing such license the President shall 
transmit to the Speaker of the House of Representatives and to the 
chairman of the Committee on Foreism Relations of the Senate an 
unclassified numbered certification with respect to such application 
specifying (1) the foreign country or international organization to 
which such export will be made, (2) the dollar amount of the items 
to be exported, and (3) a description of the items to be exported. In 



293 

addition, the President shall, upon the request of such committee or 
the Committee on International Relations of the House of Representa- 
tives, transmit promptly to both such committees a statement setting 
forth, to the extent specified in such request a description of the ca- 
pabilities of the items to be exported, an estimate of the total number 
of United States personnel expected to be needed in the foreign 
country concerned in connection with the items to be exported and 
an anlvsis of the arms control impact pertinent to such application, 
prepared in consultation with the Secretary of Defense. A certifica- 
tion transmitted pursuant to this subsection shall be unclassified, 
except that the information specified in paragraph (2) and the details 
of the description specified in paragraph (3) may be classified if the 
public disclosure thereof would be clearly detrimental to the security 
of the United States. 

(d) In the case of an approval under section 38 of this Act of a 
United States commercial technical assistance or manufacturing licens- 
ing agreement for or in a country- not a member of the North Atlantic 
Treaty Organization which involves the manufacture abroad of any 
item of significant combat equipment on the United States Munitions 
List, before such approval is given, the President shall submit a certifi- 
cation with respect to such proposed commercial agreement in a man- 
ner similar to the certification required under subsection (c) containing 
comparable information, except that the last sentence of such sub- 
section shall not apply to certifications submitted pursuant to this 
subsection. 

Sec. 37.^* Fiscal Provisioxs Relating to Foreign Military Sales 
Credits. — (a) Cash payments received under sections 21 and 22 and 
advances received under section 23 shall be available solely for pay- 
ments to suppliers (including the military departments) and refunds 
to purchasers and shall not be available for financing credits and 
guaranties. 

(b) Amounts received from foreign governments and international 
organizations as repayments for credits extended pursuant to section 
23. amounts received from the disposition of instruments evidencing 
indebtedness under section 24(b) (excluding such portion of the sales 
proceeds as may be required at the time of disposition to be obligated 
as a reserve for payment of claims under guaranties issued pursuant 
to section 2-i(b). which sums are made available for such obliga- 
tions),^^ and other collections (including fees and interest) shall be 
transferred to the miscellaneous receipts of the Treasury'. 

Sec. 38.^*^ Control of Arms Exports and Imports. — (a) (1) In fur- 
therance of world peace and the security and foreign policy of the 
United States, the President is authorized to control the import and 
the export of defense articles and defense services and to provide for- 
eign policy guidance to persons of the United States involved in the 
export and import of such articles and services. The President is 



" 22 use 2777. 

» The words to this point beginning with "under section 24(b) (excluding" were added by 
Sec. 25(11) of the FA Act of 1973. 

•^22 use 2778. Sec. 38 was added by Sec. 212(a) (1) of the International Security Assist- 
ance and Arms Export Control Act of 1976. Sec. 212(b) of the same Act repealed Sec. 414 
of the Mutual Security Act of 1954 and stated that any reference to Sec. 414 would be 
considerted as a reference to Sec. 38 of the Arms Expo'rt Control Act. See page 273 for 
complete text of Sec. 212(b). 



294 

authorized to desi^ate those items which shall be considered as de- 
fense articles and defense services for the purposes of this section 
and to promulgate regulations for the import and export of such 
articles and services. The items so designated shall constitute the 
United States Munitions List. 

(2) Decisions on issuing export licenses under this section shall be 
made in coordination with the Director of the United States Arms 
Control and Disarmament Agency and shall take into account the 
Director's opinion as to whether the export of an article will con- 
tribute to an arms race, increase the possibility of outbreak or escala- 
tion of conflict, or prejudice the development of bilateral or 
multilateral arms control arrangements. 

(b) (1) As prescribed in regulations issued under this section, every 
person (other than an officer or employee of the United States Gov- 
ernment acting in an official capacity) who engages in the business 
of manufacturing, exporting, or importing any defense articles or 
defense services designated by the President under subsection (a) 
(1) shall register with the United States Government agency charged 
with the administration of this section, and shall pay a registration 
fee which shall })e prescribed by such regulations. Such regulations 
shall prohibit the return to the United States for sale in the United 
States (other than for the Armed Forces of the United States and its 
allies or for any State or local law enforcement agency) of any mili- 
tary firearms or ammunition of United States manufacture furnished 
to foreign governments by the United States under this Act or any 
other foreign assistance or sales program of the United States, 
whether or not enhanced in value or improved in condition in a foreign 
country. This prohibition shall not extend to similar firearms that 
have been so substantially transformed as to become, in effect, articles 
of foreign manufacture. 

(2) Except as otherwise specifically provided in regulations issued 
under subsection (a) (1), no defense articles or defense services desig- 
nated by the President under subsection (a) (1) may be exported or 
imported without a license for such export or import, issued in accord- 
ance with this Act and regulations issued under this Act, except that 
no license shall be required for exports or imports made by or for an 
agency of the United States Government (A) for official use by a 
department or agency of the United States Government, or (B) for 
carrying out any foreign assistance or sales program authorized by 
law and subject to the control of the President by other means. 

(3) No license may be issued under this Act for the export of any 
major defense equipment sold under a contract in the amount of 
$25,000,000 or more to any foreign country which is not a member of 
the North Atlantic Treaty Organization unless such major defense 
equipment was sold under this Act. The prohibition contained in the 
first sentence of this paragraph shall not apply to the issuance of 
licenses under this section for the export of major defense equipment 
to Australia, Japan, or New Zealand, or major defense equipment 
sold commercially in implementation of an agreement between the 
United States Government and the government of a foreign country 
for the production of the major defense equipment to which such 
licenses relate if the President has submitted a certificate with respect 
to such proposed agreement, prior to its signature, to the Speaker of 



295 

the House of Representatives and to the chairman of the Committee 
on Foreign Relations of the Senate in the same form as the certifica- 
tion required under section 36 (b) of this Act and subject to the require- 
ments of such section.^^ 

(c) Any person who willfully violates any provision of this section 
or section 39, or any rule or regulation issued under either section, or 
who willfully, in a registration or license application or required 
report, makes any untrue statement of a material fact or omits to 
state a material fact required to be stated therein or necessary to make 
the statements therein not misleading, shall upon conviction be fined 
not more than $100,000 or imprisoned not more than two years, or 
both. 

^d) This section applies to and within the Canal 2k)ne. 

(e) In carrying out functions under this section with respect to 
the export of defense articles and defense services, the President is 
authorized to exercise the same powers concerning violations and 
enforcement which are conferred upon departments, agencies and 
officials by sections 6 (c), (d), (e), and (f) and 7 (a) and (c) of 
the Export Administration Act of 1969, subject to the same terms 
and conditions as are applicable to such powers under such Act. 
Nothing in this subsection shall be construed as authorizing the with- 
holding of information from the Congress. 

Sec. 39.^^ Fees of Military Sales Agents and Other Pay- 
ments. — (a) In accordance with such regulations as he may prescribe, 
the Secretary of State shall require adequate and timely reporting on 
j)olitical contributions, gifts, commissions and fees paid, or offered or 
agreed to be paid, by any person in connection with — 

(1) sales of defense articles or defense services under section 
22of this Act; or 

(2) commercial sales of defense articles or defense services 
licensed or approved under section 38 of this Act ; 

to or for the armed forces of a foreign country or international orga- 
nization in order to solicit, promote, or otherwise to secure the con- 
clusion of such sales. Such regulations shall specify the amounts and 
the kinds of payments, offers, and agreements to be reported, and the 
form and timing of reports, and shall require reports on the names of 
sales agents and other persons receiving such payments. The Secretary 
of State shall by regulation require such recordkeeping as he deter- 
mines is necessary. 

(b) The President may, by regulation, prohibit, limit, or prescribe 
conditions with respect to such contributions, gifts, commissions, and 
fees as he determines will be in furtherance of the purposes of this 
Act. 

(c) No such contribution, gift, commission, or fee may be included, 
in whole or in part, in the amount paid under any procurement con- 
tract entered into under section 22 of this Act, unless the amount 
thereof is reasonable, allocable to such contract, and not made to a 
person who has solicited, promoted, or otherwise secured such sale, or 

«i The last sentence of naracranh (3) was added by Sec. 20 of the International Security 
Assistance Act of 1*^77 (91 Stat. f^9^). 

«2 22 use 2779. Sec. 39 was added by Sec. 604(b) of the International Security Assist- 
ance and Arms Export Control Act of 1976. Sec. 604(c) of the same Act stated that this 
amendment "shall take effect sixty days after the date of enactment of this Act" (I.e. 
August 29, 1976). 



296 

has held himself out as being able to do so, through improper influence. 
For the purposes of this section, "improper influence" means influence, 
direct or indirect, which induces or attempts to induce consideration 
or action by any employee or officer of a purchasing foreign govern- 
ment or international organization with respect to such purchase on 
any basis other than such consideration of merit as are involved in 
comparable United States procurements. 

(d) (1) All information reported to the Secretary of State and all 
records maintained by any person pursuant to regulations prescribed 
under this section shall be available, upon request, to any standing 
committee of the Congress or any subcommittee thereof and to any 
agency of the United States Government authorized by law to have 
access to the books and records of the person required to submit 
reports or to maintain records under this section. 

(2) Access by an agency of the United States Government to 
records maintained under this section shall be on the same terms and 
conditions which govern the access by such agency to the books and 
records of the person concerned. 

Chapter 4— GENERAL, ADMINISTRATIVE, AND 
MISCELLANEOUS PROVISIONS 

Skc. 41.®' Effective Date. — This Act shall take effect on July 1, 
1968. 

Sec. 42.** General Provisions. — (a) In carrying out this Act, 
special emphasis shall be placed on procurement in the United States, 
but, subject to the provisions of subsection (b) of this section, con- 
sideration shall also be given *' to coproduction or licensed production 
outside the United States of defense articles of United States origin 
when such production best serves the foreign policy, national security, 
and economy of the United States. In evaluating anjr sale proposed to 
be made pursuant to this Act, there shall be taken into consideration 
(1) the extent to which the proposed sale damages or infringes upon 
licensing arrangements whereby United States entities have granted 
licenses for the manufacture of the defense articles selected by me pur- 
chasing country to entities located in friendly foreign countries, which 
licenses result in financial returns to the United S&tes,*® (2) the por- 
tion of the defense articles so manufactured which is of United States 
origin, and (3) in coordination with the Director of the United States 
Arms Control and Disarmament Agency, the Director's opinion as 
to "^ the extent to which such sale might contribute to an arms race, or 
increase the possibility of outbreak or escalation of conflict, or preju- 
dice the development of bilateral or multilateral arms control 
arrangements.®® 

« 22 use 2751 note. 

•* 22 use 2791. 

•"The words "but, subject to the provisions of subsection (b) of this section, consid- 
eration shall also be given" were substituted in lieu of "but consideration shall also be 
given" by ?!ec. 401(f) (1) of the FAAct of 1971 (Public Law 92-226). 

•<»Sec. 401(e) of the FAAct of 1971 (Public Law 92-226) struck out the word "and** 
whlch appeared at this point. 

<" The words "in coordination with the Director of the United States Arms Control and 
Disarmament Agency, the Director's opinion as to" were Inserted by Sec. 150(b) of Public 
Law 94-141, Foreign Relations Authorization Act, Fiscal Year 1976. 

"The words to this po'nt. beginning with ", and (3) the extent", were added by Sec. 
401 (e) (2) of the FAAct of 1971, 



297 

(b)®® No credit sale shall be extended under section 23, and no guar- 
antee shall be issued under section 24, in any case involving coproduc- 
tion or licensed,^^ production outside the United States of any defense 
article of United States origin unless the Secretary of State shall, in 
advance of any such transaction, advise the appropriate committees 
of the Congress and furnish the Speaker of the House of Representa- 
tives and the President of the Senate with full information regarding 
the proposed transaction, including, but not limited to, a description 
of the, particular defense article or articles which would be produced 
under license or coproduced outside the United States, the estimated 
value of such production or coproduction, and the probable impact of 
the proposed transaction on employment and production within the 
United States. 

(c)^^ Funds made available under this Act may be used for procure- 
ment outside the United States only if the President determines that 
such procurement will not result in adverse effects upon the economy 
of the United States or the industrial mobilization base, with special 
reference to any areas of labor surplus or to the net position of the 
United States in its balance of payments with the rest of the world, 
which outweigh the economic or other advantages to the United States 
of less costly procurement outside the United States. 

(d)®®(l) With respect to sales and guaranties under sections 21, 22, 
23, and 24, the Secretary of Defense shall, under the direction of the 
President, have primary responsibility for — 

(A) the determination of military end-item requirements ; 
(BJ the procurement of military equipment in a manner which 
permits its integration with service programs; 

(C) the supervision of the training of foreign military 
personnel ; 

(D) the movement and delivery of military end-items; and 

(E) within the Department of Defense, the performance of 
any other functions with respect to sales and guaranties. 

(2) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall, under the direction of the 
President, be determined by the Secretary of Defense. 

(e)'°(l) Each contract for sale entered into under sections 21 and 
22 of this Act shall provide that such contract may be canceled in 
whole or in part, or its execution suspended, by the United States at 
any time under unusual or compelling circumstances if the national 
interest so requires. 

(2) (A) Each export license issued under section 38 of this Act 
shall provide that such license may be revoked, suspended, or amended 
by the Secretary of State, without prior notice, whenever the Secre- 
tary deems such action to be advisable. 

(B) Nothing in this paragraph may be construed as limiting the 
regulatory authority of the President under this Act. 

"•Sec. 401(f)(2) of the FAAct of 1971 added subsection (b) and redesignated former 
subsections (b) and (c) as subsections (c) and (d). respectively. Although the slip law 
contains a comma between "licensed, production" In the first sentence, It Is Interpreted as 
"licensed production" with no comma. 

*• Subsection (e) was added by Sec, 213 of the International Security Assistance and 
Arms Export Control Act of 1976. 



20-818 O - 78 - 20 



298 

(3) There are authorized to be appropriated from time to time such 
sums as may be necessary (A) to refund moneys received from pur- 
chasers under contracts of sale entered into under sections 21 and 22 
of this Act that are canceled or suspended under this subsection to the 
extent such moneys have previously been disbursed to private con- 
tractors and United States Government agencies for work in progress, 
and (B) to pay such damages and costs that accrue from the corre- 
sponding cancellation or suspension of the existing procurement con- 
tracts or United States Government agency work orders involved. 

(f)^^ The President shall, to the maximum extent possible and con- 
sistent with the purposes of this Act, use civilian contract personnel 
in any foreign country to perform defense services sold under this 
Act. 

Sec. 4e3.^2 Administrative Expenses. — (a) Funds made available 
under other law for the operations of United States Government agen- 
cies carrying out functions under this Act shall be available for the 
administrative expenses incurred by such agencies under this Act. 

(b) ^3 Charges for administrative services calculated under section 
21(e)(1)(A) of this Act shall include recovery of administrative 
expenses incurred by any department or agency of the United States 
Government, including any mission or group thereof, in carrying out 
functions under this Act when — 

(1) such functions are primarily for the benefit of any foreign 
country; and 

(2) such expenses are not directly and fully charged to, and 
reimbursed from amounts received for, sale of defense services 
under section 21 (a) of this Act. 

Sec. 44.^* Statutory Construction. — No provision of this Act shall 
be construed as modifying in any way the provisions of the Atomic 
Energy Act of 1954, as amended, or section 7307 of title 10 of the 
United States Code. 

Sec. 45. Statutes Repealed and Amended. — (a) Sections 521, 522, 
523, 524(b) (3), 525, 634(g), and 640 of the Foreign Assistance Act 
of 1961, as amended, are hereby repealed. 

(b) Part III of the Foreign Assistance Act of 1961, as amended, is 
amended as follows : 

(1) Section 622(b) is amended by striking out "or sales". 

(2) Section 622(c) is amended by striking out "and sales" and 
"or sales". 

(3) Section 632(d) is amended by striking out "sections 506, 
522, and 523," in the first sentence and inserting in lieu thereof 
"section 506". 

(4) Section 634(d) is amended by inserting "or any other" be- 
tween "under this" and "Act" in the fourth sentence. 

(5) Section 644 (m) is amended by striking out "and sales" in 
the first sentence of the paragraph following numbered para- 
graph (3). 



^Subsection (f) was added by Sec. 605(b) of the International Security Assistance and 
Arms Export Control Act of 1976. 
^ 22 use 2792. 

'^•''Subsection (b), as added by Sec. 214 of the International Security Assistance and 
Arms Export Control Act of 1976. was amended and restated by Sec. 7(d) of the Inter- 
national Security Assistance Act of 1977 (91 Stat. 617). 

" 22 use 2793. 



299 

(c) References in law to the provisions of law repealed by subsec- 
tion (a) of this section shall hereafter be deemed to be references to 
this Act or appropriate provisions of this Act. Except for the laws 
specified in section 44, no other provision of law shall be deemed to 
apply to this Act unless it refers specifically to this Act or refers gen- 
erally to sales of defense articles and defense services under any Act. 

Sec. 46." Savings Provisions. — Except as may be expressly pro- 
vided to the contrary in this Act, all determinations, authorizations, 
regulations, orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provisions of law 
repealed by section 45(a) shall continue in full force and effect until 
modified by appropriate authority. 

Sec. 47.^^ Definitions. — For purposes of this Act, the term — 

(1) "excess defense article" has the meaning provided by section 
644(g) of the Foreign Assistance Act of 1961 ; 

(2) "value" means, in the case of an excess defense article, not less 
than the greater of — 

(A) the gross cost incurred by the United States Government 
in repairing, rehabilitating, or modifying such article, plus the 
scrap value ; or 

(B) the market value, if ascertainable; 

(3)" "defense article", except as provided in paragraph (7) of 
this section, includes — 

(A) any weapon, weapons system, munition, aircraft, vessel, 
boat, or other implement of war, 

(B) any property, installation, commodity, material, equip- 
ment, supply, or goods used for the purposes of making military 
sales, 

(C) any machinery, facility, tool, material, supply, or other 
item necessary for the manufacture, production, processing, re- 
pair, servicing, storage, construction, transportation, operation, 
or use of any article listed in this paragraph, and 

(D) any component or part of any article listed in this 
paragraph, 

but does not include merchant vessels or (as defined by the Atomic 
Energy Act of 1954) source material, byproduct material, special 
nuclear material, production facilities, utilization facilities, or atomic 
weapons or articles involving Restricted Data ; 

(4)77 "(Jefense service", except as provided in paragraph (7) of this 
section, includes any service, test, inspection, repair, training, publica- 
tion, technical or other assistance, or defense information (as defined 
in section 644(e) of the Foreign Assistance Act of 1961 ^^), used for 
the purposes of making military sales ; 

(5) ""training" includes formal or informal instruction of for- 
eign students in the United States or overseas by officers or employees 
of the United States, contract technicians, or contractors (including 
instruction at civilian institutions), or by correspondence courses, 
technical, educational, or information publications and media of all 

« 22 use 2341 note. 

W22 UPC 2341 notp. Sec. 47 was added by Sec. 25(12) of the FAAct of 1973. 
" Sec. 215 of the International Security Assistance and Arms Export Control Act of 
1976 added paragraphs (3), (4), (5), (6), and (7). 

■^8 For text, see page 153. 



300 

kinds, trainin<]j aid, orientation, training exercise, and military advice 
to foreign military units and forces; 

(6) ""major defense equipment" means any item of significant 
combat equipment on tlie United States Munitions List having a non- 
recurring research and development cost of more than $50,000,000 or a 
total production cost of more than $200,000,000; and 

(7) " "defense articles and defense services" means, with respect to 
commercial exj)orts subject to the provisions of section 38 of this Act, 
those items designated by the President pursuant to subsection (a) (1) 
of such section. 



b. International Security Assistance Act of 1977 

Partial text of Public Law 95-92 [H.R. 6684], 91 Stat. 614, approved August 4, 1977 



Note. — Except for the provisions noted below, the Interna- 
tional Security Assistance Act of 1977 consists of amendments to 
the Arms Export Control Act and the FAAct of 1961. 



AN ACT To amend the Foreign Assistance Act of 1961 to authorize international 
security assistance programs for fiscal year 1978, to amend the Arms Export 
Control Act to make certain changes in the authorities of that Act, and for other 
purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

SHORT TPTLE 

Section 1.^ This Act may be cited as the "International Security 
Assistance Act of 1977". 



REVIEW OF SECURITT SUPPORTING ASSISTANCE PROGRAM FOR EGYPT 

Sec. 9.2 (a) It is the sense of the Congress that the security support- 
ing assistance program for Egypt plays an important role in the Mid- 
dle East peace effort and that the Executive branch should concentrate 
its efforts in order to make the program a success. 

(b) In furtherance of the policy expressed in subsection (a), the 
Secretary of State shall convene a Special Interagency Task Force 
(hereafter in this section referred to as the "Task Force") to review 
and prepare a study on the security supporting assistance program for 
Egypt. The Task Force may employ consultants for the purpose of 
carrying out such study. 

(c)(1) The Task Force shall review planned United States eco- 
nomic assistance to Egypt and shall suggest alternatives to such assist- 
ance. In carrying out this paragraph, the Task Force shall consider — 

(A) the interrelationship of United States and Egyptian eco- 
nomic and political interests ; 

(B) the possibility of emphasizing programs designed to 
enhance the opportunities in the Egyptian private business and 
agriculture sectors, with special emphasis on low-cost approaches 
to expedite development; and 

(C) to the extent appropriate, the views of Egyptian econo- 
mists and government officials. 



1 22 use 2151 note. 
' 22 use 2346 note. 



(301) 



302 

(2) Based on an analysis of the considerations described in para- 
graph (1) and on such other considerations as it may find to be rele- 
vant, the Task Force shall develop a plan for the use of future United 
States economic assistance to P^gypt. Such plan shall include, where 
necessary, suggestions for revising legislation, for specific develop- 
ment projects, and for the staff requirements of the agency primarily 
responsible for administering part I of the Foreign Assistance Act of 
1961. 

{d)(l) Tn carrying out its responsibilities under paragraphs (1) 
and (2) of subsection (c), the Task Force shall consult, on a regular 
basis, with the Committee on Foreign Relations of the Senate and the 
Committee on International Relations of the House of Representatives. 

(2) The Task Force shall transmit t\\Q plan developed pursuant to 
subsection (c) (2) to the Speaker of the House of Representatives and 
the chairman of the Committee on Foreign Relations of the Senate not 
later than February 15, 1078. 

(e) Not to exceed $750,000 of the funds authorized and earmarked 
for security supporting assistiince to Egypt in the fiscal year 1977 shall 
be available to carry out this section. 



PROIIIBITIOX ox ASSISTANCE FOR NUCLEAR POWERPLANTS 

Sec. 14.^ None of the funds made available to carry out the Foreign 
Assistance Act of 1961 for the fiscal year 1978 may be used to finance 
the construction of, the operation or maintenance of, or the supply of 
fuel for, any nuclear powerplant under an agreement for cooperation 
between the United States and any other country. 



FISCAL YEAR 197 7 AUTHORIZATIONS AND LIMITATIONS 

Sec. 21.'* Authorizations of appropriations and limitations of author- 
ity applicable to the fiscal year 1977 contained in provisions of law 
amended by this Act shall not be affected by enactment of this Act. 

ASSISTANCE AND SALES TO GREECE AND TURKEY 

Sec. 22. (a) In addition to any amounts authorized to be appro- 
priated by any amendment made by this Act which may be available 
for such purpose, there are authorized to be appropriated such sums 
as may be necessary for the fiscal year 1978 to carry out international 
agreements relating to defense cooperation with Greece and Turkey. 

(b) No funds appropriated under this section may be obligated or 
expended to carry out any agreement described in subsection (a) until 
legislation has been enacted approving such agreement. 

(c) Funds appropriated for the fiscal year 1978 may not be obli- 
gated for assistance to Turkey under chapters 2 and 5 of part II of 
the Foreign Assistance Act of 1961, other than in accordance with 

section 620 (x) of such Act. 
/^\ * * * 



5 22 use 2406 note. 
* 22 use 2151 note. 



303 

ARMS SALES AND UNITED STATES DEFENSE READINESS 

Sec. 23.^ The President shall prepare and submit to the Congress not 
later than March 15, 1978, a report on the impact of United States 
foreign arms sales and transfers on United States defense readiness 
and national security. The report should focus on arms sales since 
1972 and discuss the impact of such sales on United States troops sta- 
tioned overseas. The report shall also include an analysis of United 
States foreign arms sales and transfers which have involved agree- 
ments entered into by the United States for the purchase or acquisition 
by the United States of defense articles, services, or equipment, or 
other articles, services, or equipment of any foreign country or inter- 
national organization in connection with or as consideration for such 
United States foreign arms sales and transfers, including — 

(1) an analysis of the impact such agreements have had upon 
United States business concerns which might otherwise have pro- 
vided such articles, services, or equipment to the United States; 

(2) an estimate of the costs incurred by the United States in 
connection with such agreements compared with the costs which 
would otherwise have been incurred ; 

(3) an estimate of the economic impact and unemployment 
which have resulted from such agreements ; and 

(4) an analysis of whether such costs and such domestic eco- 
nomic impact have justified entering into such agreements. 

STUDY OF TECHNOLOGY TRANSFERS 

Sec. 24.^ (a) The President shall conduct a comprehensive study of 
the policies and practices of the United States Government with 
respect to the national security and military implications of inter- 
national transfers of technology in order to determine whether such 
policies and practices should be changed. Such study shall examine — 

( 1 ) the nature of technology transfer ; 

(2) the eifect of technology transfers on United States techno- 
logical superiority ; 

(3) the rationale for transfers of technology from the United 
States to foreign countries ; 

(4) the benefits and risks of such transfers ; 

(5) trends in technology transfers by the United States and 
other countries ; 

(6) the need for controls on transfers of technology, including 
controls on the use of transferred technology, the effectiveness of 
existing end-use controls, and possible unilateral sanctions if end- 
use restrictions are violated ; 

(7) the effectiveness of existing organizational arrangements 
in the Executive branch in regulating technology transfers from 
the United States ; 

(8) the adequacy of existing legislation and regulations with 
respect to transfers of technology from the United States; and 

(9) the possibilities for international agreements with respect 
to transfers of technology. 

s 22 use 2751 note. 



304 

(b) In conducting the study required by subsection (a), tlie Presi- 
dent shall utilize the resources and expertise of the Arms Control and 
Disarmament Agency, the Department of State, the Dei)artment of 
Defense, the Department of Commerce, the National Science Founda- 
tion, the Office of Science and Technology Policy, and such other 
entities within the Executive branch as he deems necessary. 

(c) Not later than the end of the one-year period beginning on the 
date of enactment of this section, the President shall submit to the 
Congress a report setting forth in detail the findings made and conclu- 
sions reached as a result of the study conducted pursuant to subsection 
(a), together with such recommendations for legislation and adminis- 
trative action as the President deems appropriate. 

POLICY ON ZAIRE 

Sec. 25.^ No assistance of any kind may be furnished for the fiscal 
year 1978 for the purpose, or which would have the effect, or pro- 
moting or augmenting, directly or indirectly, any military or para- 
military operations in Zaire unless and until the President determines 
that such assistance should be furnished in the national security inter- 
ests of the United States and submits to the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
a report containing — 

(1) a detailed description of the assistance proposed to be fur- 
nished, including the amounts of such assistance, the categories 
and specific kinds of assistance proposed, and the purposes for 
which such assistance will be used; and 

(2) a certification that the President has determined that the 
furnishing of such assistance is important to the national security 
interests of the United States and a detailed statement, in un- 
classified form, of the reasons supporting such determination. 

POLICY STATEMENT ON UNITED STATES ARMS SALES TO ISRAEL 

Sec. 26.^ In accordance with the historic special relationship between 
the United States and Israel and previous agreements and continuing 
understandings, the Congress joins with the President in reaffirming 
that a policy of restraint in United States arms transfers, including 
arms sales ceilings, shall not impair Israel's deterrent strength or 
undermine the military balance in the Middle East. 

REVIEW OF ARMS SALES CONTROLS ON NONLETHAL ITEMS 

Sec. 27.^ The President shall undertake a review of all regulations 
relating to arms control for the purpose of defining and categorizing 
lethal and non-lethal products and establishing the appropriate level 
of control for each category. 

« 22 use 2370 note. 



I 



305 

REi»UBLIC OF KOREA 

Sec. 28. (a) (1) It is the sense of the Congress that the President 
should take all effective measures to assure that the Republic of Korea 
is cooperating fully with the investigation (including any resulting 
prosecutions) being conducted by the Department of Justice with 
respect to allegations of improper activity in the United States by 
agents of the Republic of Korea. 

(2) Accordingly, the President is requested to report to the Con- 
gress, within ninety days after the date of enactment of this Act and 
once during each ninety-day period thereafter while such investiga- 
tion (including any resulting prosecutions) is underway, with respect 
to the extent to which the Republic of Korea is cooperating with such 
investigation. 

(b) It is the further sense of the Congress that the President should 
take all effective measures to assure that the Republic of Korea is 
cooperating fully with the investigations being conducted by commit- 
tees of Congress. 

PIASTER CONVERSION 

Sec. 29.^ No provision of law shall be construed to prevent payment 
of claims of former and present Vietnamese employees of the Agency 
for International Development, who presently reside in the United 
States, for the conversion of Vietnamese piasters to dollars because 
such conversion cannot take place in the territory of the former 
Republic of Vietnam or because the official with whom such piasters 
were deposited was not a United States disbursing officer. 

' 22 use 2431 note. 



c. International Security Assistance and Arms Export Control 

Act of 1976 

Partial text of Public Law 94-329 [H.R. 13680], 90 Stat. 729, approved 

June 30, 1976 



Note. — Except for the provisions noted below, the Interna- 
tional Security Assistance and Arms Export Control Act of 1976 
consists of amendments to the FAAct of 1961, FAAct of 1973, 
the Foreign Military Sales Act, the Forei^ Military Sales Act 
Amendments, 1971, and the Mutual Security Act of 1954. 



AN ACT To amend the Foreign Assistance Act of 1961 and the Foreign A^ilitary 
Sales Act, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of Amelia in Congress asseinhl^d^ That this Act may 
be cited as the "International Security Assistance and Arms Export 
Control Act of 1976". 



International, MiLrrARY Education and Training 

Sec. 106(a) * * * 

(b) * * * 

(c) ^ Except as may be expressly provided to the contrary in this 
Act, all determinations, authorizations, regulations, orders, contracts, 
agreements, and other actions issued, undertaken, or entered into under 
authority of any provision of law amended or repealed by this section 
shall continue in full force and effect until modified, revoked, or 
superseded by appropriate authority. 

(d) ^ Funds made available pursuant to other provisions of law for 
foreign military educational and training activities shall remain avail- 
able for obligation and expenditure for their original purposes in 
accordance with the provisions of law originally applicable to those 
purposes or in accordance with the provisions of law currently appli- 
cable to those purposes. 



Arms Sales Policy 
Sec. 201(a) * * * 

(b) Any reference to the Foreign Military Sales Act shall be 
deemed to be a reference to the Arms Export Control Act. 

Sec. 202(a) * * * 



1 22 use 2321a note. 
» 22 use 2347 note. 



(306) 



307 

(b) (1)^ The President shall conduct a comprehensive study of the 
amis sales policies and practices of the United States Government, 
including policies and practices with respect to commercial arms sales, 
in order to determine whether such policies and practices should be 
hanged. Such study shall examine the rationale for arms sales to for- 
eign countries, the benefits to the United States of such arms sales, the 
risks to world peace as a result of such arms sales, trends in arms sales 
by the United States and other countries, and steps which might be 
taken by the United States to provide for limitations on arms sales. 
In addition, such study shall include an evaluation of the impact 
of United States arms sales policies on the economic and social develop- 
ment of foreign countries and consideration of steps which might 
be taken by the United States to encourage the maximum use of the 
resources of the developing countries for economic and social 
development purposes. 

(2) Xot later than the end of the one-year period beginning on the 
date of enactment of this section, the President shall submit to the 
Congress a report setting forth in detail (A) the findings made and 
conclusions reached as a result of the study conducted pursuant to 
paragraph (1) of this subsection, together with such recommenda- 
tions for legislation as the President deems appropriate, (B) the efforts 
made by the United States during the five years immediately preced- 
ing the submission of such report to initiate and otherwise encourage 
arms sales limitations, and (C) the efforts being made by the United 
States at the time of the submission of such report to initiate and 
otherwise encourage arms sales limitations in accordance with the 
policies stated in the amendment made by subsection (a) of this 
section. 



Control of Licenses With Respect to Arms Exports and Imports 

Sec. 212(a) * * * 

(b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. 
Any reference to such section shall be deemed to be a reference to 
section 38 of the Arms Export Control Act * and any reference to 
licensee issued under section 38 o.f the Arms Export Control Act * shall 
be deemed to include a reference to licenses issued under section 414 
of the Mutual Security Act of 1954. 

(2) All determinations, authorizations, regulations, orders, con- 
tracts, agieements, and other actions issued,- undertaken, or entered 
into under section 414 of the Mutual Security Act of 1954 shall 
continue in full force and effect until modified, revoked, or superseded 
by appropriate authority. 



report on sales of excess defense articles 

Sec. 217.= Xot later than February 28, 1977, the President shall 
Transmit to the Speaker of the House of Representatives and the 
Conmiittee on Foreign Relations of the Senate a full and complete 

» 22 use 2751 note. 

* For text see page 293. 

• 22 use 2751 note. 



308 

report regarding all sales made under the Arms Export Control Act ® 
during the period July 1, 1976, through December 31, 1976, of excess 
defense articles to foreign governments and international organiza- 
tions (other than any such article sold solely for scrap). Such report 
shall set forth — 

( 1 ) the number of such sales ; 

(2) the total acquisition costs of the articles sold ; 

(3) the total gross price paid for such articles exclusive of 
administrative surcharges and costs of repairing, rehabilitation, 
or modifying such articles ; 

(4) the data set forth under paragrpahs (1), (2), and (3) 
totaled separately for those sales made at less than 331/^ per centum 
of the acquisition costs thereof ; and 

(5) the estimated total proceeds of sales of articles included 
under paragraph (4) if such articles had been sold instead through 
United States Government surplus property disposal operations 
and the percentage thereof that would have been paid out of such 
proceeds to meet direct expenses incurred in connection with such 
dispositions pursuant to law. 

STUDY OF THE EFFECTS OF ARMS EXPORT CONTROL PROVISIONS 

Sec. 218.'^ (a) The Secretary of State, in consultation with the Sec- 
retary of Defense, shall conduct a comprehensive study of the effects 
of the enactment of the arms export control provisions contained in 
this title with a view to determining the consequences of such provi- 
sions on (1) the .foreign policy of the United States, (2) the balance 
of payments of the United States, (3) the trade with foreign countries, 
(4) unemployment in the United States, and (5) weapons procurement 
by the Department of Defense. 

(b) The Secretary of State shall submit the results of such study to 
the President and the Congress within one year after the date of 
enactment of this section, together with such comments and recom- 
mendations for legislation as he deems appropriate. 



LIMITATION ON CERTAIN ASSISTANCE TO AND ACTTVITIES IN ANGOLA 

Sec. 404/ (a) Notwithstanding any other provision of law, no assist- 
ance of any kind may be provided for the purpose, or which would 
have the effect, of promoting or augmenting, directly or indirectly, the 
capacity of any nation, group^ organization, movement, or individual 
to conduct military or paramilitary operations in Angola unless and 
until the Congress expressly authorizes such assistance by law enacted 
after the date of enactment of this section. 

(b) If the President determines that assistance prohibited by sub- 
section (a) should be furnished in the national security interests of the 
United States, he shall submit to the Speaker of the House of Repre- 
sentatives and the Committee on Foreign Relations of the Senate a 
report containing — 

«For te^t. spp paee 271. 
f 22 use 2293 note. 



309 

(1) a description of the amounts and categories of assistance 
winch he recommends to be authorized and the identity of tiie 
proposed recipients of sucii assistance ; and 

{'2) a certihcation that he has determined that the furnishing 
of such assistance is important to the national security interests 
of the United States and a detailed statement in unclassihed 
form, of the reasons supporting such determination. 

(c) The prohibition contamed m suusection ^d) uoes not apply with 
respect to assistance which is furnished solely for humanitarian 
purposes. 

(d) The provisions of this section may not be waived under any 
other provision of law. 

SOVIET INTERVENTION IN ANGOLA 

Sec. 405.' The Congress views the large-scale and continuing Soviet 
intervention in Angola, including active sponsorship and support of 
Cuban armed forces in Angola, as being completely inconsistent with 
any reasonably detined policy of detente, as well as with Articles 1 
and 2 of the United Nations Charter, the principle of noninterference 
in the affairs of other countries agreed to at Helsinki in 1975, and with 
the spirit of recent bilateral agreements between the United States and 
the Union of Soviet Socialist Republics. Such intervention should be 
taken explicitly into account in United States foreign policy planning 
and negotiations. 

LIMITATIONS ON ECONOMIC ASSISTANCE, MILITARY ASSISTANCE, SALES, 
ANiy SALES CREDITS FOR CHILE 

Sec. 406.^ (a) (1) No military or security supporting assistance and 
no military- education and training may be furnished under the For- 
eign Assistance Act of 1961 ^ for Chile ; and no credits (including par- 
ticipations in credits) may be extended and no loan may be guaranteed 
under the Arms Export Control Act ^° with respect to Chile. No deliv- 
eries of any such assistance, credits, or guaranties may be made to 
Chile on or after the date of enactment of this section. 

(2) No sales (including cash sales) may be made and no export 
license may be issued under the Arms Export Control Act^° with 
respect to Chile on or after the date of enactment of this section. 

(b)(1) Notwithstanding any other provision of law, the total 
amount of economic assistance which may be made available for Chile 
during the period beginning July 1, 1976, and ending September 30, 
1977, may not exceed $27,500,000. For purposes of this subsection, eco- 
nomic assistance includes any assistance of any kind which is pro- 
vided, directly or indirectly, to or for t^^c bor^fif of Chile by any 
department, agency, or other instrumentality of the United States 
Government (other than assistance provided under chapter 2, 4, or 5 
of Dart II of the Foreign Assistance Act of 1961 ^^ or credits or guar- 
anties extended under the Arms Export Control Act) ,^^ but does not 
include commodities furnished under title II of the Agricultural 
Trade Development and Assistance Act of 1954.^' This subsection 

• 22 use 2370 note. 

• F'^r text, see twge 9. 

" For text, see pas-e 271. 
" For text, see p«pe 85. 
'^For text, see page 285. 
" For text, see page 357. 



310 

shall not be construed to authorize the furnishing of any assistance 
whicli is proliibited under any other provision of law. 

(2) The $27,500,000 limit set forth in paragraph (1) of this sub- 
section may be increased by not to exceed $27,500,000 if the President 
certifies in writing to the Speaker of the House of Representatives 
and the Committee on Foreign lielations of the Senate that the Gov- 
ernment of Chile — 

(A) does not engage in a consistent pattern of gross violations 
of internationally recognized human rights, including torture or 
cruel, inhuman, or degrading treatment or punishment, prolonged 
detention witliout charges or trial, or other flagrant denials of the 
right to life, liberty, or the security of person; 

(B) has permitted the unimpeded investigation, by interna- 
tionally recognized commissions on human lights (includiiig the 
United Nations Commission on Human Rights and the Inter- 
American Commission on Human Rights of the Organization of 
American States) of alleged violations of internationally recog- 
nized human riglits (as described in subparagraph (A) of this 
paragraph) ; and 

(C) has taken steps to inform the families of prisoners of the 
condition of and charges against such prisoners. 

CONTROL OF MILITARY FORCES IN THE INDIAN OCEAN 

Skc. 407.^^ (a) It is the sense of Congress that the President should 
undertake to enter into negotiations with the Soviet Union intended 
to achieve an agreement limiting the deployment of naval, air, and 
land forces of the vSoviet Union and the United States in the Indian 
Ocean and littoral countries. Such negotiations should be convened 
as soon as possible and should consider, among other things, limita- 
tions with respect to — 

(1) the establishment or use of facilities for naval, air, or land 
forces in the Indian Ocean and littoral countries; 

(2) the number of naval vessels which may be deployed in the 
Indian Ocean, or the number of "shipdays" allowed therein; and 

(3) the type and number of military forces and facilities al- 
lowed therein. 

(b) Not later than December 1, 1976, the President shall transmit 
a report to the Speaker of the House of Representatives and the Com- 
mittee on Foreign Relations of the Senate with respect to steps he has 
taken to carry out the provisions of this section. 

UNITED STATES CITIZENS IMPRISONED IN MEXICO 

Sec. 408.^^ (a) The Congress, while sharing the concern of the Presi- 
dent over the urgent need for international cooperation to restrict traf- 
fic in dangerous drugs, is convinced that such efforts must be consistent 
with respect for fundamental human rights. The Congress, therefore, 
calls upon the President to take steps to insure that United States 
efforts to secure stringent international law enforcement measures are 
combined with efforts to secure fair and humane treatment for citizens 
of all countries. 



"22 use 2151 note. 
« 22 use 2291 note. 



I 



311 

(b) (1) The Congress requests that the President communicate 
directly to the President and Government of the Republic of Mexico, 
a nation with which we have friendly and cooperative relations, the 
continuing desire of the United States for such relations between our 
two countries and the concern of the United States over treatment of 
United States citizens arrested in Mexico. 

(2) The Secretary of State shall report to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of the 
Senate within one hundred and twenty days after the date of enact- 
ment of this section, and every one hundred and twenty days there- 
after, on progress toward full respect for the human and legal rights 
of all United States citizens detained in Mexico. 

EMERGENCY FOOD NEEDS OF PORTUGAL 

Sec. 409.^^ It is the sense of the Congress that the President should 
undertake immediately an evaluation of the emergency food needs of 
Portugal. It is further the sense of the Congress that the President 
should take timely action to alleviate such emergency by providing 
Portugal with food commodities under the provisions of pertinent 
stautes. 

STRIFE IN LEBANON 

Sec. 410.^^ It is the sense of the Congress that the situation in Leba- 
non, a nation traditionally friendly to the United States, poses a 
danger to peace in the Middle East. The Congress deplores the armed 
civil strife and the continuing erosion of national institutions which 
threaten to destroy the political and economic fabric of Lebanon with 
such tragic impact on all its people. The Congress views with grave 
concern any outside efforts to exploit the current strife with the pur- 
pose of transforming Lebanon into a radical state in confrontation 
with Israel. The Congress requests that the President use his good 
offices to secure an end to the civil strife and national discord in Leb- 
anon and to preserve the traditional friendly attitude of Lebanon 
toward the United States. 



KOREA 

Sec. 412.^® The Congress views with distress the erosion of important 
civil liberties in the Republic of Korea and requests that the Presi- 
dent communicate this concern in forceful terms to the Government 
of the Republic of Korea within sixty days after enactment. 

REPEAL OF INDOCHINA ASSISTANCE 

Sec. 413. (a) Part V of the Foreign Assistance Act of 1961 and 
sections 34, 35, 36, 37, 38, 39, and 40 of the Foreign Assistance Act of 
1974 are repealed. AH determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, undertaken, or 

M 22 Vf^C 2293 note. 
"22 use 2441 note, 
u 22 use 2428 note. 



312 

entered into under authority of any provision of law repealed by this 
section shall continue in full force and effect until modified, revoked, 
or supei-seded by appropriate authority. 

(b) Subject to the availability of appropriations therefor, the 
President is authorized to adopt as a contract of the United States 
Government, and assume any liabilities arising thereunder (in whole 
or in part), any contract which had been funded or approved for 
funding by the Agency for International Development prior to June 
30, 1975, for financing with funds made available under the Foreign 
Assistance Act of 1961 or the Foreign Assistance Act of 1974, or any 
equitable claim based upon a letter of intent issued prior to April 30, 
1975, in which the Agency had expre.ssed its intention to finance a 
transaction subject to the availability of funds, between the former 
Governments of Vietnam or Cambodia (including any of their 
agencies) or the Government of Laos (or any of its agencies) and any 
person and to apply with respect to any such contract the authorities 
of the Foreign Assistance Act of 1961. 

(c) Funds made available for the purposes of part V of the Foreign 
Assistance Act of VM'A and of section 36 of the Foreign Assistance Act 
of 1974 (including amounts certified pursuant to section 1311 of the 
Supplemental Appropriation Act, 1955 (31 U.S.C. 200), as having 
been obligated against appropriations heretofore made) are author- 
ized to be appropriated, and thereafter, to remain available until ex- 
pended, to meet necessary expenses arising from the actions author- 
ized by subsection (b) of this section and such funds are authorized 
to remain available until expended to meet necessary expenses aris- 
ing from the termination of assistance programs authorized by such 
part and such section 36, which expenses may include but need not be 
limited to the settlement of claims and associated personnel costs. 



INTERIM QUARTER AUTHORIZATIONS 

Sec. 506.'® (a) Any authorization of appropriations in this Act, or 
in any amendment to any other law made by this Act, for the fiscal 
year 1976, shall be deemed to include an additional authorization of 
appropriations for the period beginning July 1. 1976. and ending 
September 30. 1976. in amounts which equal one-fourth of any amount 
authorized for the fiscal year 1976 and in accordance with the authori- 
ties applicable to operations and activities authorized under this Act 
or such other law, unless appropriations for the same purpose are 
specifically authorized in a law hereinafter enacted. 

(b) The aggregate total of credits, includinpr participations in 
credits, extended pursuant to the Arms Export Control Act and of 
the principal amount of loans guaranteed pursuant to section 24(a) of 
such Act 20 durina the period beginning July 1. 1976. and ending 
September 30, 1976, may not exceed an amount equal to one-fourth of 
the amount authorized by section 31 Cb) of such Act" to be extended 
and guaranteed for the fiscal year 1976. 



"22TTSr2162note. 

20 For text, see paee ^S.'S. 

21 For text, see page 287. 



313 

BASE AGREEMENTS WITH SPAIN, GREECE, AND TtJRKET 

Sec. 507. ^^ (a) In addition to any amounts authorized to be appro- 
priated by any amendment made by this Act which may be available 
for such purpose, there are authorized to be appropriated such sums 
as may be necessary for the fiscal year 1977 to carry out international 
agreements or other arrangements for the use by the Armed Forces 
of the United States of military facilities in Spain,^^ Greece, or 
Turkey. 

(b) No funds appropriated under this section may be obligated or 
expended to carry out any such agreement or other arrangement until 
legislation has been enacted approving such agreement or other 
arrangement. 

TITLE VI— MISCELLANEOUS PROVISIONS 

EXPEDITED PROCEDURE IN THE SENATE 

Sec. 601. (a) (1) The provisions of subsection (b) of this section 
shall apply with respect to the consideration in the Senate of any 
resolution required by law to be considered in accordance with such 
provisions. 

(2) Any such law shall — 

(A) state whether the term "resolution" as used in subsection 
(b) of this section, means, for the purposes of such law — 

(i) a joint resolution; or 

(ii) a resolution of either House of Congress; 

(iii) a concurrent resolution; and 

(B) specify the certification to which such resolution shall 
apply. 

(b) (1) For purposes of any such law, the continuity of a session of 
Congress is broken only by an adjournment of the Congress sine die, 
and the days on which either House is not in session because of an 
adjournment of more than three days to a day certain are excluded 
in the computation of the period indicated. 

(2) Paragraphs (3) and (4) of this subsection are enacted — 

(A) as an exercise of the rulemaking power of the Senate and 
as such the yare deemed a part of the rules of the Senate, but 
applicable only with respect to the procedure to be followed in the 
Senate in the case of resolutions described by subsection (a) (1) 
of this section ; and they supersede other rules of the Senate only 
to the extent that they are inconsistent therewith; and 

(B) with full recognition of the constitutional right of the 
Senate to chansre such rules at any time, in the same manner and 
to the same extent as in the case of any other rule of the Senate. 

(3) (A) If the committee of the Senate to which has been referred 
a resolution relating to a certification has not reported such resolution 
at the end of ten calendar days after its introduction, not counting any 



"22 use 21 51 note. 

23 Sec. 1 of Pnblic I^aw 94-534 provides amounts of monev which shall be available for 
oblipration and exoenditure to carry out the Treaty of Friendship and CooT>eration Between 
t^e United States and Spain out of t^^e funds authorized to be appropriated for fiscal year 
1977 under Sec. 507. Sec. 1 further states that Subsection (b) of Sec. '507 shall not anply 
with res-^ect to the obligation or expenditure of funds appropriated under such section to 
carry out the treaty. 



20-818 O - 78 - 21 



314 

day which is excluded under paragraph (1) of this subsection, it 
is in order to move either to discharge the committee from further 
consideration of the resolution or to discharge the committee from 
further consideration of any other resolution introduced with respect 
to the same certification which has been referred to the committee, 
except that no motion to discharge shall be in order after the com- 
mittee has reported a resolution with respect to the same certification. 

(B) A motion to discharge under subparagraph (A) of this para- 
graph may be made only by a Senator favoring the resolution, is 
privileged, and debate thereon shall be limited to not more than 1 hour, 
to be divided equally between those favoring and those opposing the 
resolution, the time to be divided equally between, and controlled by, 
the majority leader and the minority leader or their designees. An 
amendment to the motion is not in order, and it is not in order to move 
to reconsider the vote by which the motion is agreed to or disagreed to. 

(4) (A) A motion in the Senate to proceed to the consideration of 
a resolution shall be privileged. An amendment to the motion shall not 
be in order, nor shall it be in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to. 

(B) Debate in the Senate on a resolution, and all debatable motions 
and appeals in connection therewith, shall be limited to not more than 
10 hours, to be equally divided between, and controlled by, the majority 
leader and the minority leader or their designees. 

(C) Debate in the Senate on any debatable motion or appeal in con- 
nection with a resolution shall be limited to not more than 1 hour, to 
be equally divided between, and controlled by, the mover and the 
manager of the resolution, except that in the event the manager of the 
resolution is in favor of any such motion or appeal, the time in opposi- 
tion thereto, shall be controlled by the minority leader or his designee. 
Such leaders, or either of them, may, from time under their control on 
the passage of a resolution, allot additional time to any Senator during 
the consideration of any debatable motion or appeal. 

(D) A motion in the Senate to further limit debate on a resolution, 
debatable motion, or appeal is not debatable. No amendment to, or 
motion to recommit, a resolution is in order in the Senate. 

PROCUREMENTS FROM SMALL BUSINESSES 

Sec. 602. In order to encourage procurements from small business 
concerns under chapter 4 of the Foreign Assistance Act of 1961,^* the 
Administrator of the Agency for International Development shall 
report to the Congress every six months on the extent to which small 
businesses have participated in procurements under such chapter and 
on what efforts the Agency has made to foster such procurements from 
small business concerns. The Small Business Administration shall lend 
all available assistance to the Agency for the purpose of carrying out 
this section. 



USE OF PERSONNEL 

Sec. 605.^^ (a) Nothing in this Act is intended to authorize any ad- 
ditional military or civilian personnel for the Department of Defense 

** For text, see pa*re 96 
» 22 use 2751 note. 



315 

for the purposes of this Act, the Foreign Assistance Act of 1961, or 
the Arms Export Control Act. Personnel levels authorized in statutes 
authorizing appropriations for military and civilian personnel of the 
Department of Defense shall be controlling over all military and 
civilian personnel of the Department of Defense assigned to carry out 
functions under the Arms Export Control Act and the Foreign Assist- 
ance Act of 1961. 



EXTORTION AND ILLEGAL PAYMENTS 

Sec. 607.^*' Within 60 days after receiving information which sub- 
stantiates that officials of a foreign country receiving international 
security assistance have (1) received illegal or otherwise improper 
payments from a United States corporation in return for a contract to 
purchase defense articles or services from such corporation, or (2) 
extorted, or attempted to extort, money or other things of value in 
return for actions by officials of that country that permit a United 
States citizen or corporation to conduct business in that country, the 
President shall submit to Congress a report outlining the circumstances 
of such payment or extortion. The report shall contain a recommenda- 
tion from the President as to whether the United States should con- 
tinue a security assistance program for that country. 

EXTENSION OF AIRPORT AT PINECREEK, MINNESOTA 

Sec. 608. The consent of Congress is hereby granted for the State 
of Minnesota or a subdivision or instrumentality thereof to enter into 
an agreement with tlio (xovernment of Canada, a Canadian Province, 
or a subdivision or instrumentality of either, providing for the exten- 
sion of the Pinecreek Airport at Pinecreek, Minnesota, into the Prov- 
ince of Manitoba, Canada, and the operation of the airport by a joint 
Canadian-American airport authority. The effectiveness of such agree- 
ment shall be conditioned on its approval by the Secretary of State. 

^ 22 use 2394a. 



d. Foreign Military Sales Act Amendments, 1971, as amended 

Partial text of Public Law 91-672 [H.R. 15628], 84 Stat. 2053, approved January 12, 
1971, as amended by Public Law 92-226 [Foreign Assistance Act of 1971 ; S. 2819], 
86 Stat. 20, 33, approved February 7, 1972; Public Law 93-189 [Foreign Assist- 
ance Act of 1973; S. 1443], 87 Stat. 714, 729, approved December 17, 1973; Public 
Law 93-559 [Foreign Assistance Act of 1974; S. 3394], 88 Stat. 1795, 1799, 
approved December 31, 1974; and Public Law 94-329 [International Security 
Assistance and Arms Export Control Act of 1976; H.R. 13680], 90 Stat. 740, 
approved June 30, 1976. 

AN ACT To amend the Foreign Military Sales Act, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled * ♦ ♦ 



Note. — Sections 1-4 of this Act amended the Foreign Military 
Sales Act (Arms Export Control Act), Public Law 90-629, Octo- 
ber *22. 1968. For text, -ee pace 271. 



Sec. 5.^ It is the sense of Congress that (1) the President should con- 
tinue to press forward urgently with his efforts to negotiate with the 
Soviet Union and other powers a limitation on arms shipments to the 
Middle East, (2) the President should be supported in his position 
that arms will be made available and credits provided to Israel and 
other friendly states, to the extent that the President determines such 
assistance to be needed in order to meet threats to the security and 
independence of such states, and (3) if the authorization provided in 
the Foreign ^lilitary Sales Act, as amended, should prove to be insuf- 
ficient to effectuate this stated policy, the President should promptly 
submit to the Congress requests for an appropriate supplementary 
authorization and appropriation. 

Sec. 6.* It is the sense of the Congress that — 

(1) the President should immediately institute a thorough and 
comprehensive review of the military aid programs of the United 
States, particularly with respect to the military assistance and 
sales operations of the Department of Defense, and 

(2) the President should take such actions as may be appro- 
priate — 

(A) to initiate multilateral discus-sions amonsr the United 
States, the Union of Soviet Socialist Republics. Great Britain, 
France. West Germany. Italy and other countries on the 
control of the worldwide trade in armaments, 

1 22 U.S.C. 2751 note. 

(316) 



317 

(B) to commence a general debate in the United Nations 
with respect to the control of the conventional arms trade, 
and 

(C) to use the power and prestige of his office to signify 
the intention of the United States to work actively with all 
nations to check and control the international sales and dis- 
tribution of conventional weapons of death and destruction. 

Sec. 7.^ Unless the sale, grant, loan, or transfer of any International 
Fighter aircraft (1) has been authorized by and made in accordance 
with the Foreign Military Sales Act or the Foreign Assistance Act 
of 1961, or (2) is a regular commercial transaction (not financed by 
the United States) between a party other than the United States and 
a foreign country, no such aircraft may be sold, granted, loaned, or 
otherwise transferred to any foreign country (or agency thereof) 
other than South Vietnam. For purposes of this section, "Interna- 
tional Fighter aircraft'' means the fighter aircraft developed pursuant 
to the authority contained in the proviso of the second paragraph of 
section 101 of Public Law 91-121 (relating to military procurement 
for fiscal year 1970 and other matters).^ 

Sec. 8.* (a)^ * * * [Repealed-1976] 

(b)5 * * * [Eepealed-1976] 

(c)5 * * * [Repealed-1976] 

(d) The President shall promptly and fully inform the Speaker of 
the House of Representatives and the Committee on Foreign Relations 
and the Committee on Appropriations of the Senate of each decision to 
furnish on a grant basis to any country excess defense articles which 
are major weapons systems to the extent such major weapons system 
was not included in the presentation material previously submitted to 
the Congress. Additionally, the President shall also submit a quarterly 
report to the Congress listing by country the total value of all deliv- 
eries of excess defense articles, disclosing both the aggregate original 
acquisition cost and the aggregate value at the time of delivery. 

(e)5 * * * [Repealed-1976] 

Sec. 9.« * * * [Repealed-1973] 

Sec. 10.^ (a) Notwithstanding any provision of law enacted before 
the date of enactment of this section, no money appropriated for for- 
cig:n assistance (including foreign military sales) shall be available 
for obligation or expenditure — 

(1) unless the appropriation thereof has been previously au- 
thorized by law ; or 

(2) in excess of an amount previously prescribed by law. 

2 22U.S.C. 2410a. 

3 "Provided, That the funds authorized to be appropriated for the procurement of 
aircraft for the Air Force during fiscal year 1970, not to exceed $28,000,000 shall be 
available to initiate the procurement of a fighter aircraft to meet the needs of Free 
World forces in Southeast Asia, and to accelerate the withdrawal of United States 
forces from South Vietnam and Thailand: the Air Force shall (1) prior to the obliga- 
tion of any funds appropriated pursuant to this authorization, conduct a competition 
for the aircraft which shall be selected on the basis of the threat as evaluated and 
determined by the Secretary of Defense, and (2) be authorized to use a portion of such 
funds as may be required for research, development, test, and evaluation." 

* 22 use 2321b. 

s Subsections (a), (b), (c). and (e) of Sec. 8, which related to excess defense articles, 
were repealed by Sec. 210(c) (2) of the International Securitv Assistance and Arms Export 
Control Act of 1976. Sec. 210(c)(2) further stated, "All fiinds in the suspense account 
referred to in subsection (a) of such section on July 1, 1976, shall be transferred to the 
general fund of the Treasury." 

• Sec. 9, which related to any transfer of a defense article to another country, was 
repealed by Sec. 26(4) of the FAAct of 1973. 

7 22 U.S.C. 2412. 



318 

(b) To the extent that legislation enacted after the making of an 
appropriation for foreign assistance (including foreign military 
sales) authorizes the obligation or expenditure thereof, the limitation 
contained in subsection (a) shall have no effect. 

(c) The provisions of this section shall not be superseded except 
by a provision of law enacted after the date of enactment of this 
section which specifically repeals or modifies the provisions of this 
section. 

Sec. 11.® For purposes of sections 8 and 9 — 

(1) "defense article" and "excess defense articles" have the 
same meanings as given them in section 644 (d) and (g), respec- 
tively, of the Foreign Assistance Act of 1961; and 

(2) "foreign country" includes any department, agency, or in- 
dc|>endent Cv^tablislinient of the foroi<Tii countr\'. 

Sec. 12. The joint resolution entitled "Joint resolution to promote 
the maintenance of international peace and security in Southeast 
Asia" approved Au^st 10, 1964 (78 Stat. 384; Public Law 88-4u8), 
is terminated effective upon the day that the second session of the 
Ninety-first Congress is last adjourned. 

Sec. 13.® No funds authorized or appropriated pursuant to this or 
any other law may be used to transport chemical munitions from the 
Island of Okinawa to the United States. Such funds as are necessary 
for the detoxification or destruction of the above described chemical 
munitions are hereby authorized and shall be used for the detoxifica- 
tion or destruction of chemical munitions only outside the United 
States. For Durposes of this section, the term "tjnited States" means 
the several States and the District of Columbia. 



• 22 use. 2321c. 

• 50 U.S.C. 1512 note. 



e. Executive Order 11958 
Executive Order 11958, January 18, 1977, 42 F.R. 4311* 

Administration of Arms Export Contiwls 

By virtue of the authority vested in me by the Constitution and 
statutes of the United States of America, including the Arms Export 
Control Act, as amended (22 U.S.C. 275-1 ct seq.)^ and Section 301 of 
Title 3 of the United States Code, and as President of the United 
States of America, it is hereby ordered as follows : 

Section 1. Delegation of Functions. The following functions con- 
ferred upon the President by the Arms Export Control Act (22 U.S.C. 
2751 et seq.), hereinafter referred to as the Act, are delegated as 
follows : 

(a) Those under Section 3 of the Act, with the exception of sub- 
sections (a)(1), (b), (c)(3) and (c)(4), to the Secretary of State: 
Provided, That the Secretary of State, in the implementation of the 
functions delegated to him under Sections 3 (a) and (d) of the Act, 
is authorized to find, in the case of a proposed transfer of a defense 
article or related training or other defense service by a foreign coun- 
try or international organization not otherwise el-gible under Section 
3(a)(1) of the Act, whether the proposed transfer will strengthen 
the security of the United States and promote world peace. 

(b) Those under Section 5 to the Secretary of State. 

(c) Those under Section 21 of the Act, with the exception of the 
last sentence of subsection (d) and all of subsection (h), to the Secre- 
tary of Defense. 

(d) Those under Section 22(a) of the Act to the Secretary of 
Defense. 

(e) Those under Section 23 of the Act, with the exception of the 
function of certifying a rate of interest to the Congress as provided 
by paragraph (2) of that Section, to the Secretary of Defense. 

(f ) Those under Section 24 of the Act to the Secretary of Defense. 

(g) Those under Section 25 of the Act to the Secretary of Stnte. The 
Secretary of Defense and the Director of the Arms Control and Dis- 
armament Agency, within their respective areas of responsibility, shall 
assist the Secretary of State in the preparation of materials for pres- 
entation to the Congress under that Section. 

(h) Those under Section 34 of the Act to the Secretary of State. To 
the extent the standards and criteria for credit and guaranty trans- 
actions are based upon national security and financial policies, the 
Secretary of State shall obtain the prior concurrence of the Secretary 
of Defense and the Secretary of the Treasury, respectively. 

(i) Those under Section 35 (a) of the Act to the Secretary of State. 

iThls Exec'itive Order superserJes Executive Order 11501, Pecember 22. 19fi9 34 F.R. 
20169, as amended by Executive Order 11685, September 27, 1972, 37 F.R. 20155. 

(319) 



320 

(j) Those under Sections 36(a) and 36(b)(1) of the Act, except 
with respect to the certification of an emerofency as provided by sub- 
section (b) ( 1 ) , to the SecretaiT of Defense. The Secretary of Defense, 
in the implementation of tlie functions delegated to him under Sec- 
tions 36(a) and (b) (1) shall consult with the Secretary of State, who 
shall, with respect to matters related to subparagraphs (D) and (I) 
of Section 36(b) (1). consult with the Director of the Arms Control 
and Disarmament Agrency. AVith respect to those functions under S'^c- 
tions 36(a) (5) and (6). the Secretar\' of Defense «?hall consult with 
the Director of the Office of Management and Budget. 

(k) Those under Sections 36 (c) and (d) of the Act to the Secre- 
tary of State. 

(l) Those under Section 38 of the Act : 

(1) to the Secretary of State, except as otherwise provided in this 
subsection. De«signations, including changes in designations, by the 
Secretary of State of items or categories of items which shall be con- 
sidered as defense articles and defense services subject to export con- 
trol under Section 38 shall have the concurrence of the Secretary of 
Defense ; 

(2) to the Secretary of the Treasury, to the extent they relate to the 
control of the import of defense articles and defense services. In carry- 
ing out such functions, the Secretary of the Treasury- shall be guided 
by the views of the Secretary of State on matters affecting world 
peace, and the external security and foreign policy of the United 
States. Designations including changes in designations, by the Secre- 
tary of the Treasury of items or categories of items which shall be 
considered as defense articles and defense services subject to import 
control under Section 38 of the Act shall have the concurrence of the 
Secretary of State and the Secretary of Defense ; 

(3) to the Secretary of Commerce, to carry out on behalf of the 
Secretary of State, to the extent such functions involve Section 38(e) 
of the Act and are agreed to by the Secretary of State and the Secre- 
tary of Commerce. 

(m) Those under Section 39(b) of the Act to the Secretary of 
.State. In carrying out such functions, the Secretarj^ of State shall 
consult with the Secretary of Defense as may be necessary to avoid 
interference in the application of Department of Defense regulations 
to sales made under Section 22 of the Act. 

(n) Those under Sections 42 (c) and (f) of the Act to the Secre- 
tary of Defense. 

Sec. 2. Coordination, (a) In addition to the specific provisions of 
Section 1 of this Order, the Secretary of State and the Secretary of 
Defense, in carrying out the functions delegated to them under this 
Order, shall consult with each other and with the heads of other de- 
partments and acrencies, including the Secretary of the Treasury, the 
Administrator of the Agency for International Development, and the 
Director of the Arms Control and Disarmament Agency, on matters 
pertaining to their responsibilities. 

(b) In accordance with Section 2(b) of the Act and under the di- 
rections of the President, the Secretary of State, taking: into account 
other United States activities abroad, shall be responsible for the con- 



321 

tinuous supervision and general direction of sales and exports under 
the Act, including but not limited to, the negotiation, conclusion, and 
termination of international agreements, and determining whether 
there shall be a sale to a country and the amount thereof, and whether 
there shall be delivery or other performance under such sale or export, 
to the end that sales and exports are integrated with other United 
States activities and the foreign policy of the United States is best 
served thereby. 

Sec. 3. Allocation of Funds. Funds appropriated to the President 
for carrying out the Act shall be deemed to be allocated to the Secre- 
tary of Defense without any further action of the President. 

Sec. 4. Revocation. Executive Order No. 11501, as amended, is re- 
voked ; except that, to the extent consistent with this Order, all deter- 
minations, authorizations, regulations, rulings, certificates, orders, di- 
rectives, contracts, agreements and other actions made, issued, taken 
or entered into under the provisions of Executive Order No. 11501, as 
amended, and not revoked, superseded or otherwise made inapplicable, 
shall continue in full force and effect until amended, modified or ter- 
minaited by appropriate authority. 

Gerald K. Ford. 

The White House, 
January 18, 1977. 



iLh\ 



6. Armed Forces Authorizations and Appropriations 
a. Department of Defense Appropriation Authorization Act, 1977 

Partial text of Public Law 94-361 [H.R. 12438], 90 Stat. 923, approved 

July 14, 1976 

An Act To authorize appropriations during the fiscal year 1977 for procurement 
of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and 
other weapons, and research, development, test, and evaluation for the Armed 
Forces, and to prescribe the authorized personnel strength for each active duty 
component and of the Selected Reserve of each Reserve component of the 
Armed Forces and of civilian personnel of the Department of Defense, and to 
authorize thejnilitary training student loads, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled ^ 



TITLE VIII— GENERAL PROVISIONS 



Sec. 803. (a) It is the sense of Congress that weapons systems being 
developed wholly or primarily for employment in the North Atlantic 
Treaty Organization theater shall conform to a common North 
Atlantic Treaty Organization requirement in order to proceed toward 
joint doctrine and planning and to facilitate maximum feasible stand- 
ardization and interoperability of equipment. A common North 
Atlantic Treaty Organization requirement shall be understood to 
include a common definition of the military threat to the North 
Atlantic Treaty Organization countries. The Secretary of Defense 
shall, in the reports required by section 302(c) of Public Law 93-365, 
as amended, identify those programs in research and development 
for United States forces in Europe and the common North Atlantic 
Treaty Organization requirements which such programs support. In 
the absence of such common requirement, the Secretary shall include a 
discussion of the actions taken within the North Atlantic Alliance 
in pursuit of a common requirement. The Secretary of Defense shall 
also report on efforts to establish a regular procedure and mechanism 
within the North Atlantic Treaty Organization for determining 
common military requirements. 

(b) It is the sense of the Congress that proi2:ress toward the realiza- 
tion of the objectives of standardization and interoperability would 
be enhanced by expanded inter- Allied procurement of arms and equip- 
ment within the North Atlantic Treaty Organization. It is further 
the sense of the Congress that expanded inter- Allied procurement 
would be facilitated by greater reliance on licensing and coproduction 
agreements among the signatories of the North Atlantic Treaty. It is 

(323) 



324 

the Congress' considered judgment that such agreements, if properly 
constructed so as to preserve the efficiencies associated with economies 
of scale, could not only minimize potential economic hardship to par- 
ties to such agreements but also increase the survivability, in time of 
war, of the Alliance's armaments production base by dispersing manu- 
facturing facili